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How Organizations Can Connect Marketing KPIs to Business Objectives

13 Ιανουαρίου 2023

How Organizations Can Connect Marketing KPIs to Business Objectives

How Organizations Can Connect Marketing KPIs to Business Objectives

13 Ιαν 2023

Over the past two decades—as digital has become the primary medium for lead generation and customer engagement—brands have increasingly adopted new measurement methods to track the effectiveness of their marketing programs. Some of these methods, such as multitouch attribution models that track ad exposures and user interactions at an individual level, have helped usher in an era of experience personalization. Customers now expect brands to provide relevant, intuitive engagement at every touch point.


Moreover, marketing teams are increasingly expected to contribute to business growth by leveraging the right media channels at the right time to drive customer conversion and increase revenue. Making smarter decisions and faster adjustments requires leaders to execute effective measurement and optimization in the moments that matter.


However, recent changes at the device, browser, and regulatory levels have diminished both the volume and availability of third-party customer and media performance data that helps marketers activate, measure, and improve performance. At the same time, marketing science teams are increasingly focused on factoring both online and offline media into measurement models to improve attribution capabilities.


To gauge the current state of advertising performance measurement during this time of transformation, Deloitte Digital surveyed more than 800 marketing measurement leaders at U.S.-based marketing agencies and consumer businesses. According to the research, brands with the most advanced marketing measurement capabilities—dubbed “measurement front-runners”—are deepening customer engagement and loyalty, driving faster sales, and beating revenue goals for their businesses.

Over the past two decades—as digital has become the primary medium for lead generation and customer engagement—brands have increasingly adopted new measurement methods to track the effectiveness of their marketing programs. Some of these methods, such as multitouch attribution models that track ad exposures and user interactions at an individual level, have helped usher in an era of experience personalization. Customers now expect brands to provide relevant, intuitive engagement at every touch point.


Moreover, marketing teams are increasingly expected to contribute to business growth by leveraging the right media channels at the right time to drive customer conversion and increase revenue. Making smarter decisions and faster adjustments requires leaders to execute effective measurement and optimization in the moments that matter.


However, recent changes at the device, browser, and regulatory levels have diminished both the volume and availability of third-party customer and media performance data that helps marketers activate, measure, and improve performance. At the same time, marketing science teams are increasingly focused on factoring both online and offline media into measurement models to improve attribution capabilities.


To gauge the current state of advertising performance measurement during this time of transformation, Deloitte Digital surveyed more than 800 marketing measurement leaders at U.S.-based marketing agencies and consumer businesses. According to the research, brands with the most advanced marketing measurement capabilities—dubbed “measurement front-runners”—are deepening customer engagement and loyalty, driving faster sales, and beating revenue goals for their businesses.

Over the past two decades—as digital has become the primary medium for lead generation and customer engagement—brands have increasingly adopted new measurement methods to track the effectiveness of their marketing programs. Some of these methods, such as multitouch attribution models that track ad exposures and user interactions at an individual level, have helped usher in an era of experience personalization. Customers now expect brands to provide relevant, intuitive engagement at every touch point.


Moreover, marketing teams are increasingly expected to contribute to business growth by leveraging the right media channels at the right time to drive customer conversion and increase revenue. Making smarter decisions and faster adjustments requires leaders to execute effective measurement and optimization in the moments that matter.


However, recent changes at the device, browser, and regulatory levels have diminished both the volume and availability of third-party customer and media performance data that helps marketers activate, measure, and improve performance. At the same time, marketing science teams are increasingly focused on factoring both online and offline media into measurement models to improve attribution capabilities.


To gauge the current state of advertising performance measurement during this time of transformation, Deloitte Digital surveyed more than 800 marketing measurement leaders at U.S.-based marketing agencies and consumer businesses. According to the research, brands with the most advanced marketing measurement capabilities—dubbed “measurement front-runners”—are deepening customer engagement and loyalty, driving faster sales, and beating revenue goals for their businesses.

Business-Critical KPIs

Business-Critical KPIs

Many brands and traditional marketing agencies are failing to measure performance in ways that align with core business objectives, the research finds. For example, only about one-third of companies surveyed use revenue-based metrics to gauge marketing performance.


Measurement front-runners, by comparison, are 1.4 times more likely to use revenue and 2.5 times more likely to use total sales as KPIs than companies with low measurement maturity. This stronger focus on business-critical metrics is reflected in the overall number of KPIs organizations track: Measurement front-runners use 27% more KPIs than do low-maturity organizations to assess their marketing performance, according to the research.


Meanwhile, traditional marketing agencies are less than half as likely as the internal marketing departments of measurement front-runners to track total sales as a KPI for measuring marketing performance. They are also less likely to track other business-critical metrics such as revenue and return on ad spend—likely because traditional marketing agencies typically do not have access to the first-party data required to connect campaign performance to business results.

Many brands and traditional marketing agencies are failing to measure performance in ways that align with core business objectives, the research finds. For example, only about one-third of companies surveyed use revenue-based metrics to gauge marketing performance.


Measurement front-runners, by comparison, are 1.4 times more likely to use revenue and 2.5 times more likely to use total sales as KPIs than companies with low measurement maturity. This stronger focus on business-critical metrics is reflected in the overall number of KPIs organizations track: Measurement front-runners use 27% more KPIs than do low-maturity organizations to assess their marketing performance, according to the research.


Meanwhile, traditional marketing agencies are less than half as likely as the internal marketing departments of measurement front-runners to track total sales as a KPI for measuring marketing performance. They are also less likely to track other business-critical metrics such as revenue and return on ad spend—likely because traditional marketing agencies typically do not have access to the first-party data required to connect campaign performance to business results.

Many brands and traditional marketing agencies are failing to measure performance in ways that align with core business objectives, the research finds. For example, only about one-third of companies surveyed use revenue-based metrics to gauge marketing performance.


Measurement front-runners, by comparison, are 1.4 times more likely to use revenue and 2.5 times more likely to use total sales as KPIs than companies with low measurement maturity. This stronger focus on business-critical metrics is reflected in the overall number of KPIs organizations track: Measurement front-runners use 27% more KPIs than do low-maturity organizations to assess their marketing performance, according to the research.


Meanwhile, traditional marketing agencies are less than half as likely as the internal marketing departments of measurement front-runners to track total sales as a KPI for measuring marketing performance. They are also less likely to track other business-critical metrics such as revenue and return on ad spend—likely because traditional marketing agencies typically do not have access to the first-party data required to connect campaign performance to business results.

Nearly nine in 10 consumer companies surveyed say they track customer experience (CX) KPIs such as customer lifetime value and customer retention. Today, most internal marketing organizations can capture and assess CX-related performance of owned media—website interactions, for example—and internally managed advertising and marketing campaigns.


In contrast, outside agencies rarely have access to a brand’s customer data, making it very difficult for them to measure and optimize campaigns against customer-focused KPIs. As a result, paid media campaigns managed by outside agency partners often cannot measure campaign performance in ways that connect specifically to CX objectives. For example, agencies working on behalf of their clients are less likely to track customer lifetime value than even consumer companies with low measurement maturity.


This disconnect between agency and brand measurement capabilitieOKs makes it difficult for many brand marketing organizations to fully integrate paid-media campaign measurement with owned-media marketing campaigns—a capability that is increasingly important as customers seek cohesive brand messaging.


Going forward, marketers should reimagine transparency, ownership, and management of campaign data and measurement capabilities.Nearly nine in 10 consumer companies surveyed say they track customer experience (CX) KPIs such as customer lifetime value and customer retention. Today, most internal marketing organizations can capture and assess CX-related performance of owned media—website interactions, for example—and internally managed advertising and marketing campaigns.