How Independent Marketing Measurement is Essential for the C-Suite
In a world where online presence is so important for almost every business, there’s never been more of a need for measurement tools that demonstrate the precise relationship between spend and revenue. The benefits to marketers of being able to understand which of their campaigns are working (and which aren’t) is evident, but measurement tools also have positive impacts that extend beyond the marketing team. From CEO to CFO, here’s a look at how an independent measurement solution can help marketers build the most productive possible relationships with their C-suite.
A common theme for C-suite execs is the CMO and CFO’s battle over budget. This clash is no surprise, as a fundamental part of any CMO’s role is pushing for more resources, whereas the traditional scope of the CFO is to limit expenditure. There’s no doubt however, that this conflict is significantly worsened by limitations in the tools most companies use to track their digital spend. These platforms fail CFOs (and as a result CMOs) in 3 primary ways:
- They are often partisan, making them hard to trust
- They cannot report with sufficient flexibility, only giving limited windows into the data
- Worst of all, they are often victim to double-counting, meaning they show an inflated view of success
An independent measurement solution can solve these issues. A new study from Sequent Partners found that Google Analytics consistently reported favourable revenue from AdWords vs other channels, even showing up to 200x more revenue from Google-owned channels! (when compared with an independent measurement tool’s results). It’s no wonder CFOs don’t trust this – with so much skin in the game, it can be difficult to believe Google when their marking their own homework. By contrast, an independent attribution solution’s sole purpose is to maximise its clients’ profits. No hidden agendas.
By combining data from all channels and placing it into a flexible format that allows customizable reporting, independent measurement gives CFOs confidence in their data. Limited or fixed views of performance can often obscure reality, but the custom reporting you get with a dedicated tool means that data can be interrogated from all angles to build out a complete picture of your marketing performance. Similarly, by creating a single source of marketing truth, the problem of double-counting is eliminated. Many businesses we speak to report that individual department conversion claims can inflate the true conversion count by 100%… a CFO’s nightmare! An independent attribution solution makes this an issue of the past.
In short, collaboration with a data-driven MTA provider is key to a harmonious and profitable relationship between Finance and Marketing.
The CEO is at the helm of your business. They set the direction, vision and objectives of the company. They need to be sure that their marketing function is running in parallel with their overall business goals. Is the marketing department prioritizing what’s most important for the business in its entirety? Are marketing efforts ensuring future growth and revenue generation? These are the sort of questions CEO’s need straight answers to.
One key feature of many measurement partners is their ability to work together with their clients to provide them with data that’s tailored to their business needs. In Fospha’s case, a feature that many of our customers appreciate is the monthly CEO report, which can be totally customized to track progress against current goals of the leadership team. For example: one of our customers recently completed a six-month process to discover their true Customer Lifetime Value, guided all the way by a regular Fospha report pushed straight into the CEO’s inbox. The data we provided them allowed them to make a successful business case to their board and unlock substantial funding for their next stage of growth.
When it comes to marketing, business intelligence platforms have a layered advantage. As a marketer, you’re able to give your CMO accurate information, who is then able to use this to better inform the rest of senior leadership.
The CMO is the go-to when it comes to justifying marketing spend allocations. It’s also crucial that they’re able to push coordinated and effective messaging across the multitude of newly expanding marketing channels, touchpoints, and devices.
To makes things worse, the widespread issue of data fragmentation is at play here. Data silos make it much harder for marketers and CMOs to be able focus specifically on customer experience, and consequentially, harder for them to understand how to improve their marketing ROI.
A unified measurement tool provides the answer to this, creating a single source of truth and promoting collaboration across different marketing functions by normalizing and reinforcing datasets. This allows teams to analyze performance across each channel against the same success criteria, ensuring the highest level of messaging coordination.
Overall, trying to accurately demonstrate the value of your marketing efforts can be a bore – notably so in recent years due to the increasing complexity of digital marketing measurement.
An independent measurement solution can provide you with some respite. Having the ability to give your senior leadership the clearest possible picture of marketing performance surely ensures not only the best for your department, but the best for the business as a whole.