Nuts & Bolts: Get Eye-to-Eye on ROI
The results of two surveys on marketing measurement indicate a schism over how well companies are doing with marketing measurement. In a joint survey of 150 members of Financial Executives International, only 7 percent of senior-level financial executives stated they were convinced of their company’s ability to measure ROI on marketing efforts. Conducted in November 2006 by Marketing Management Analytics (MMA), the study also found that only one in 10 executives was confident of his marketing department’s ability to forecast the impact of its efforts on sales.
But that’s not how the marketing side sees things. MMA conducted a similar survey in April 2006, working with the Association of National Advertisers to probe marketers’ viewpoint on how accurately they can measure their performance. Twenty-three percent of respondents were satisfied with their ability to measure ROI, and 25 percent were certain of their department’s skill at forecasting the impact of marketing on sales.
Regardless of this assessment split, what’s key is that only a quarter of organizations think they have a handle on measuring the financial impact of their marketing efforts. In a press release, Ed See, the COO of MMA, explains what’s going on: “Many organizations treat marketing measurement as an expense, rather than a control, and that’s the root of the problem.” But he sees this conflict being resolved as companies hire or promote CMOs with operations experience as opposed to advertising-only backgrounds.
Marketers take note: Spend more time with your CFO.