An imperfect approach to maximising and measuring the ...d3hip0cp28w2tg.cloudfront.net/uploads/2016-12/marketingmatters-1… · Marketing has always been a mix of magic and logic,

An imperfect approach to

maximising and measuring the

return on your marketing

investment

Make Happy Ltd © 2016

Agenda

1. Marketing then and now

2. The non-magic formula

• Set goals

• Use a mix of data and judgment

• Manage risk

• Imperfect metrics

3. Questions


I know half of my advertising

doesn’t work. I just don’t

know which half.

Lord Leverhulme


The world of marketing has

changed… In-store

Magazines

TV

Billboards

Radio


Native

In-store

Magazines

TV

Billboards

Radio Content Social media

Closed

networks

Dark social

Near field

Instant

messaging Experiential


90% of global marketers do

not feel confident measuring

ROI.

Fournaise Group

https://www.fournaisegroup.com/marketers-not-trained-in-marketing-performance-and-roi/


WARNING:

this is not a magic formula


Step one: set your goals

State what you want your marketing to achieve.

• Do you want to raise brand awareness? Increase sales? Get a different kind

of customer?

Only then can you begin to define and measure what ROI means to you.

• For example, if you want to raise brand awareness then measuring sales

volume in not useful.

• Instead you would want to measure customer recall of your brand.


Example: PRO-Bars

PRO-Bars, protein bar brand wants to increase its volume of sales.

The online sales of the bar are particularly low, so the marketing team has been

tasked with changing this.

Marketing goal: increase sales of protein bars through the website.


Step two: use your judgment

Marketing has always been a mix of magic and logic, facts and judgement.

We have more data than ever, however no single approach to cutting it up,

analysing it and finding the ultimate ‘truth’.


Form a hypothesis

Seek analytical evidence

Make decisions

Judgement

Data

Judgement


Example: PRO-Bars

Marketing goal: increase sales on website.

Hypothesis: they are not sending enough traffic to the website and need to invest

more in digital advertising.

Evidence: Using Google Analytics they see that the conversion rate online is

poor. However, they can also see that those who arrive from email marketing and

Adwords have a higher conversion rate than anyone else.


3. Manage the risk

Try a dynamic, step by step approach to allocating your marketing spend:

70% tried and trusted

20% safe

10% experimental


Example: PRO:Bars

70% Email and Adwords

20% Print

10% Paid Facebook ads


4. Find (imperfect) metrics

Go back to your goals. What are you trying to achieve?

Then find metrics that your progress towards these goals can be measured…

and the right tools that can help you measure them.

For example, if you are trying to grow online sales, then metrics might include:

• Overall volume of online sales

• Overall conversion rate on the website

• Conversion rate on the website by channel


Example: PRO-Bars

Metrics:

• Overall online sales (measured using sales data)

• Benchmark conversion rates pre optimisation and post (Google Analytics)

• Conversion rates by channel (Google Analytics)

• Track redemption rates of the special offer and conversion rates on the

dedicated landing page (sales data and Google Analytics)


Clear goals

+ Data and judgement

+ Managed risk

+ The right metrics

= ROI


Business decision-making

Communicating strategy and value story to shareholders

Defining the strategy and planning for the long term

Planning: forecast, strategy and tactics for the short term

Managing essential support services: Finance, Legal, HR, H&S

Ensuring quantity/quality/timeliness of supply of product

Ensuring cost effectiveness of product and procurement

Ensuring quantity/quality/timeliness of distribution of product

Ensuring that product is marketed and demand is managed

Communicating product and value story to customers

Brand Manager

CEO

Rachel Murphy: Understanding the Dynamics of Business. APG November 2016


Increase the level of cashflow

Accelerate cashflow

Extend the duration of cashflow

Reduce the risks attached with

cashflow


The financial accounting model

reports spending cutbacks as

increases in reported income,

even when the reductions have

cannibalised capabilities for

creating future economic value.

Hugh Davidson Financial Times, 14th October 2002


Spending on advertising,

communications and

marketing is an investment

to build intangible value.

Rachel Murphy


Thank you. Questions? [email protected]

uk.linkedin.com/in/jonathanbannister

@jlbLDN

@makehappylondon

Documents

An imperfect approach to maximising and measuring the ...d3hip0cp28w2tg.cloudfront.net/uploads/2016-12/marketingmatters-1… · Marketing has always been a mix of magic and logic,