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Record the Customer like you would the Cash!

‘Marketing’ and ‘Measurement’ haven’t exactly gone hand in hand as the best couple… When you think about the extent a business takes to properly record and measure financial activity, it is quite amazing how little attention is paid to recording and measuring marketing activity. Cash of course is the lifeblood of any business, however that very lifeblood only comes from one place – the customer.

Remembering the old adage ‘customer is king’ you might think that recording and measuring marketing activity would be done with the same forensic attention to detail the number-zealous accountant pays to keeping the company books… Unfortunately this is often not the case.

 

Do Marketing + Measurement really mix?

It surprises me that despite the size of a business, or the number of years it’s been established, how little attention is actually paid to marketing measurement. Marketing is sometimes not seen as measurable, but more of a ‘warm & fuzzy’ area of gimmicks and advertising – instead of a finely tuned revenue-driving machine that can be measured and tweaked for optimal performance.

When marketing is considered measurable, marketing expenses become investments rather than costs. Each marketing investment needs to be based upon a solid business case that is backed up by data, rather than the ‘here say’ of what worked or didn’t in the past.

So do marketing and measurement actually mix? Most definitely! In-fact they become a rather uplifting tonic for businesses experiencing the ailment of falling customer demand.

 

The System is The Foundation…

The increased uptake of cloud-based CRM (customer relationship management) systems and the transition to online or digital marketing is helping to demonstrate the necessity of adequate marketing measurement.

Businesses are now appreciating the value of having a comprehensive database of customers and prospects that is garnered with gold nuggets of valuable insight on customer’s wants and needs. With a good CRM as the foundation for recording and measuring marketing activity, a business can begin to measure the depth and value of their customer relationships.

As well as CRM systems, online marketing through digital channels such as websites, social media and e-mail offers marketers unprecedented analytics to measure marketing campaign effectiveness. The swing from offline to online or digital marketing makes measurement so much easier than before and is ushering in a new age of marketing measurement which many organisations are struggling to keep up with… So how exactly can marketing be married to measurement?

 

Marrying ‘Marketing’ + ‘Measurement’ for maximum results:

‘Marketing’ and ‘measurement’ actually both make a very complimentary couple, and the closer the relationship, the better! You will notice I have purposely selected the term ‘marry’ because marketing and measurement need to perpetually go hand in hand.

The science of marketing measurement is about setting up the system, defining the metrics you want to measure, then meticulously recording and analyzing the data.

The art of marketing measurement is about involving your people in the development of the system, the definition of metrics, and the habitual practice of recording and measuring data.

Marketing measurement is a long term mind-set rather than a ‘flavor of the month’ business initiative. All team members whether customer facing or non-customer facing, whether sales based or non-sales based firstly need to be educated and convinced of the merit for measuring marketing.

An appreciation for measuring marketing needs to be established in the minds and hearts of your team by recognizing the fundamental truth that the customer is at the center of your organisation, and that we should pay the same meticulous attention to recording marketing campaigns and customer relationships, as we would do to keeping track of the company finances.

 

Key questions to consider:

1) System Setup – What system do we have for recording and tracking customer interactions and/or performance of our marketing campaigns?

2) Metric Definition – What metrics do we want to use to measure our marketing and our customer relationships, and how can we compare and benchmark this data?

3) Meticulous Records – How meticulously do we keep marketing campaign and customer relationship records in comparison with our businesses financial records?

3) Habitual Practice – What is our organisations attitude toward measuring marketing? Do our managers and staff appreciate the  magnitude of marketing measurement and its importance in ensuring our long-term survival?