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markathon | may 2013
The 15 metrics everyone in marketing should know
Review by Pallavi Price Rs.1719 eBook: Rs.491
In this post collapse economic era, every department under the microscope is looking for results. The challenge of providing concrete results is amplified further in case of marketing due to the abstract nature of branding and awareness, and when times are tough is often one of the first to face the scissors. Marketing in these uncertain times will become much more rigorous and each campaign will have to prove its ROI. And how will you do this, Mark Jeffery, a lecturer at Northwestern University’s Kellogg School of Management, has an answer.
Summary Jeffery’s book ‘Data-Driven Marketing: The 15 metrics everyone in marketing should know’ is a result of research conducted with hundreds of marketing executives on return on marketing investment (ROMI) .He lays out his case step-by-step and shows how organizations can deliver significant performance gains from marketing. His survey of 252 firms capturing $53 billion of annual marketing spending forms the foundation for this book. With a key focus on using data to drive profits, he compares and contrasts the leaders and the laggards in terms of financial performance and how they use data to drive their marketing activities. Data driven marketing accomplishes the one thing that is most critical in modern times when it comes to running a marketing organization - using data to drive profits. In his book, the author stresses the critical relationships between business and information technology and how, when joined together, these two forces can truly revolutionize business results and he explains it in a way which is easy to follow for ‘non-IT’ people aswell. Fundamental to the 15 metrics described in this book are the use of enterprise customer, operational and transactional data as the book rightly points out the power of “Voice of the Customer” data and how its continued mining is important to driving marketing strategy. The metrics in the book are defined for both tangible and intangible value parameters and are versatile in the sense that they are industry agnostic and are equally
applicable businesses both small and large. But given all its advantages, first thing that comes to mind when it comes to ‘big data’, is the cost associated with implementing it. Jeffery has a simple solution to this “…you don’t need 100 percent of the data and a multimillion-dollar infrastructure to get stared. The key is to focus on collecting the right data. Ask what are the 20 percent of data that will give 80 percent of impact? Start there. Then show the quick win in order to get executive support and secure funding for the next stage.”
Organization The book is divided into three parts. The first does the ground work including how to overcome the obstacles to data driven marketing. The second part elaborated the 15 metrics to improve marketing performance which include financial and non-financial metrics. There are also metrics to measure customer life time value and how to measure ROI on internet marketing. The third part takes it to the next level by explaining how to use these metrics.
Verdict: 4/5 It is extremely well thought out and easy to understand, and the cases presented in the book highlight the significant impact data-driven marketing can have on an organization. It highly readable and practical but it is a big book and sometimes it becomes dry.
This easy to follow book addresses the 3 key aspects of metrics development, Why you need metrics, What to measure and How to measure. It covers the essential concepts that take marketing from an art to a science. Churn, Internal Rate of Return, Take Rate, Customer Acquisition Cost, Customer Satisfaction, WOM, CPC, CPM and more. However, the book shines in its focus on the forest and not the trees. This is not the book for you if you want to know the complexities of how to measure customer conversion rate or what are the best ways to measure your web traffic. But, if you want to understand how these items fit into your overall marketing picture board and how to put the tons of data available today to work and get closer to your customer — it is a perfect addition to your marketing library.