Big Data

Use Big Data for marketing accountability

Astute marketing executives can leverage the power of big data analytics to fortify their value in the organization. Take some time today to see how your executives feel about your marketing accountability.

According to the Association of National Advertisers, accountability is the most important issue facing marketing executives this year, and it has been a recurring, top concern for the last six years. For those unfamiliar with exactly what this means in a marketing context, marketing accountability means demonstrating the value of marketing to top management through performance management and reporting; a popular shorthand term for this concept is ROMI which stands for Return on Marketing Investment.

Knowing this is a chronic problem for marketing executives makes big data specialists very excited--this is one area where big data analytics can make a huge difference.

There are three interrelated challenges with measuring marketing performance: causality, communication, and credibility. Causality is the most fundamental. Marketing is not like sales where activities are easily linked with results. Many marketing activities--such as advertising, positioning, and promotion--don't have a direct causal relationship with revenues.

This turns marketing measurement into a complex process which compromises communication. So even if you are able to build a good model of marketing impact, it may be difficult for the rest of the organization to understand. Unfortunately, this promotes a credibility issue--complexity and confusion lowers credibility.

Big data analytics can be used to counter this effect by raising the confidence level in marketing measurements; however, for this to succeed, you must step outside of the marketing function and look at it from three critical perspectives: management, consumer, and critic.

The view that matters most

Don't ever lose sight of the fact that top management is your key stakeholder in this exercise, and their confidence in your measurement system is what needs to be maximized. That's why the very first step in building marketing accountability is doing research on your own top management.

Start by formalizing a qualitative research study on the level of confidence top management has in your marketing metrics, and the themes (both positive and negative) that form the basis of their perception. This should guide the rest of your initiative and act as a control mechanism to ensure its continued effectiveness.

As a general rule, you'll find that top management's main focus is on making good investment decisions and it should be clear what marketing's contribution is to this process. As such, it's best to align your performance metrics with the company's business units and avoid metrics that ostensibly benefit multiple (or all) business units.

For instance, as sensible as it may seem to invest in promoting the overall corporate brand, it's difficult to attribute these costs to the various lines of business that bring in revenues. As a result, these costs look like overhead--which is not the perception you want to build.

Looking in from the outside

The second perspective you must consider is your customers'. This is a great failing of many marketing performance measurement systems, as many marketing professionals approach this exercise from a functional perspective and not from a customer experience point of view.

The potential customer that you market to becomes a real customer when they buy your products and services. This is also the same customer that calls your service line when there's a problem, learns from your educational services, and racks up points in your loyalty system when they take advantage of your promotions.

Having this holistic view of the customer is important for building a marketing measurement model. Here, big data analytics can be used inside the organization to profile your most valuable customers, then used outside the organization to target them.

Additionally, these types of big data insights will help you understand why your most important customers are leaving your company for the competition, thereby justifying marketing activities that help customer retention.

What's wrong with this picture?

The third and final perspective to consider is that of the critic that's reviewing your model and methods. When submitting research for an academic journal, there will invariably be a peer-review process. When these peers review your research, they will look for errors in your approach. They don't necessarily need to agree with your findings; however, your procedures should be scientifically sound. If they aren't your piece won't get published.

In the same regard, you should conduct a formal audit of your measurement model once it's complete. According to the CMO Survey, over 60% of companies do not formally evaluate the quality of their marketing analytics. It's no surprise then, why executives have a credibility problem with their marketing performance reporting.

Provided your methods pass muster, the great advantage with big data analytics is the precision you can get with the confidence in your marketing metrics. By definition, big data deals with large volumes of data, and this usually translates to large sample sizes. As the sample size goes up, so does the quality of your marketing metrics.

The challenge however, as noted earlier, is how to communicate this level of quality. A big data scientist understands the relationship between sample size, alpha risk, beta risk, discrimination, standard deviation, and confidence interval. However, it's not the data scientist that needs to understand this--it's top management. This is where a great manager comes into play: one who understands the analysis and knows how to effectively communicate it upstream.

Conclusion

Big data analytics and marketing accountability go hand in hand to solve one the biggest challenges facing marketing executives today, as long as the right perspectives are considered. First is the view from the fore (top management), then the view from around (customer), and finally the view from behind (critic).

Having these three perspectives in mind, astute marketing executives can leverage the power of big data analytics to fortify their value in the organization. Take some time today to see how your executives feel about your marketing accountability. It will be the first step in a very valuable exercise.

About

John Weathington is President and CEO of Excellent Management Systems, Inc., a management consultancy that helps executives turn chaotic information into profitable wisdom.

388 comments
asid33
asid33

As a matter of fact, one can use the Sim of the country, wherever he or she go. Moreover, if the users are not satisfied with the current provider, they can switch over to other. video production nyc

richy9664
richy9664

I really liked the design and out look of this blog. Keep up the good work. It really made my day! 

best face serum

richy9664
richy9664

Blessed I am that I am reading this blessed document these days. I really assumed that the very best of the articles stopped arriving. However immediately after looking over this, my belief rises again 

boom beach cheats

abbasishariq2
abbasishariq2

Gabbar is Back is an upcoming Hindi action drama film directed by Krish and produced by Sanjay Leela Bhansali and Viacom 18 Motion Pictures. best skin care products


abbasishariq2
abbasishariq2

such an interesting article here Afatogel.com Bandar TerbesarSitusTogel Online Terpercaya. I was searching for something like that for quite a long time and at last I have found it here.windows computer

abbasishariq2
abbasishariq2

kids karate in jupiterI discovered your site ideal for me. It consists of wonderful and useful posts. I've read many of them and also got so much from them. In my experience, you do the truly amazing.Trulyi'm impressed out of this publish.

abbasishariq2
abbasishariq2


wow, great, I was wondering how to cure acne naturally. and found your site by google, learned a lot, now i’m a bit clear. I’ve bookmark your site and also add rss. keep us updated. 
give up alcoho

abbasishariq2
abbasishariq2

www.epigamer.comI recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading.

abbasishariq2
abbasishariq2

I feel really happy to have seen your webpage and look forward to so many more entertaining times reading here. Thanks once more for all the details.hotmail

jeromewilmer
jeromewilmer

This is a really good post this. Truly, a magnificent art is making an article. And you are quite a master at that art. I would tell you to keep on continuing this awesome work of yours

Paket Wisata Goa Pindul ---> http://po.st/8HJKFF
Paket Pelancongan Yogyakarta ---> http://po.st/i7h1li

abbasishariq2
abbasishariq2

I don’t know what has happened to the custom of delivering consistent good articles. I hope that the custom comes alive after this..thumbs up for your work.daily quotes to live by

abbasishariq2
abbasishariq2

You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up.vision system

abbasishariq2
abbasishariq2

it's really nice and meanful. it's really cool blog. Linking is very useful thing.you have really helped lots of people who visit blog and provide them usefull information WebsiteBuilder

abbasishariq2
abbasishariq2

It appears as though spent lots of time and effort in your blog. I’ve saved it and i’m searching toward reading through new articles.Best Webhosting

abbasishariq2
abbasishariq2

Best Messages for New Year 2015

A simple bookmarking tool that makes it easy to save, organize and share your favorite web pages. Access your bookmarks from any computer, phone or tablet. Listango works on all modern web browsers…

richy9664
richy9664

I agree with your blog and i will be back to check it more in the future so please keep up your work. michael kors outleti love your content & the way that you write 

Panasonic TX-50A400B

abbasishariq2
abbasishariq2

such an interesting article here Afatogel.com Bandar TerbesarSitusTogel Online Terpercaya. I was searching for something like that for quite a long time and at last I have found it here.how to start a blog

abbasishariq2
abbasishariq2

There animator that may be obtained very easily. But, essentially, all your animators possess the capacity and also ability connected with different.izmir escort

abbasishariq2
abbasishariq2

Cialis Irelandsuch an interesting article here Afatogel.com Bandar TerbesarSitusTogel Online Terpercaya. I was searching for something like that for quite a long time and at last I have found it here.

richy9664
richy9664

brilliant job with her view on traditional U.S. Immigration values, I wanted to re-post the amended snippet below. 

file archive software

abbasishariq2
abbasishariq2

voyance directe

There animator that may be obtained very easily. But, essentially, all your animators possess the capacity and also ability connected with different.

abbasishariq2
abbasishariq2

it's really nice and meanful. it's really cool blog. Linking is very useful thing.you have really helped lots of people who visit blog and provide them usefull information.

MOBE

karachiboy
karachiboy

Bless you for using accompanying us,I likewise always discover something untried from your dispatch.tiendas online.

abbasishariq2
abbasishariq2


übersetzungThere animator that may be obtained very easily. But, essentially, all your animators possess the capacity and also ability connected with different.

richy9664
richy9664

One more technique to avoid being scammed as you buy online would be choosing to deal with those retailers who have been doing business for a while. 

switch energy provider

abbasishariq2
abbasishariq2

Hello ! I just wish to give an enormous thumbs up for the nice info you’ve got right here on this post. I will probably be coming back to your weblog for more soon what to text your ex girlfriend to get her back.loft conversions

abbasishariq2
abbasishariq2

I really like the dear information you offer in your articles. I’m able to bookmark your site and show the kids check out up here generally. Im fairly positive theyre likely to be informed a great deal of new stuff here than anyone else!kids karate classes robina

abbasishariq2
abbasishariq2

You have done a great job. I will definitely dig it and personally recommend to my friends. I am confident they will be benefited from this site.

van hire london

abbasishariq2
abbasishariq2

I would like to thank you for the efforts you have made in writing this article. I am hoping the same best work from you in the future as well.Loft conversions London

Find_a_doctor
Find_a_doctor

Big Data will be the key to treating patients with psoriasis. Psoriasis is an immune-mediated disease with an increase in keratinocyte turnover secondary to an increase in inflammatory cytokines. These come from T-helper cells. The disease may have an autoimmune start against LL37. Brodalumab and Ixekizumab are monoclonal antibodies that have entered phase three clinical studies. Cosentyx has been FDA-approved also.

<a href="https://twitter.com/brodalumab/" target="_blank" rel="nofollow">brodalumab phase 3</a>

 <a href="https://psoriasis.org" rel="do follow">Brodalumab Side Effects</a>.

Editor's Picks