media boot camp power session — marketing effectiveness
DESCRIPTION
TRANSCRIPT
Panelists:
Marketing Effectiveness – Improving Accountability and Returns to Impact Business Performance
Kelley Quain Troia, Senior Director, Wal-mart
Margaret Beck, Vice President, Williams-Sonoma
Aseem Chandra, Senior VP, Omniture
Michael Dunn, CEO, Prophet
CEO’s Want More
Slide 2
measurability transparency predictability
Slide 3
“Half the money I spend on advertising is wasted;
the trouble is, I don't know which half”
John Wanamaker pioneer of the modern
department store
The Gordian knot of marketing
Slide 4
Don’t Measure What Matters
• Failure to measure why investments succeed or fail
• Inability to separate sales response from brand building impact
Don’t Focus on Decision Making
• Silo-based view of investments managed differently within the organization
• Lack of actionable fact base and processes to reallocate investments by effectiveness
• Insufficient capabilities and skills to analyze data and recommend improvements
Why marketing accountability efforts fail
What’s required?Excellent performance across all 6 value levers
A rigorous system to hold the levers of
marketing accountable
The first imperative…Figure out what you know
Classify your existing
marketing investments
based on your current
“effectiveness” understanding
Budget
$50M
Proven To Be Ineffective
Proven To Be Effective
Unproven But Strategic
Unproven & Non-Strategic
Savings ?
Horizon 1: Diagnostic Findings
Budget
Horizon 2: Findings in Action
Increased by reinvesting wasted spend
Ineffective Due To Execution
Fix ineffective execution through capability building
Qualify new activities through experimentation
Use structured testing to validate unproven strategic
spend
$44M
Marketing Intent
Change in Perceptions, Availability, Incentives
Present & Future
Business Results:
Revenue, Profit, Share
Value-Creating
Behaviors:
Penetration, Loyalty, Multiple
Purchase, Recommend
Present & Future
Business Results:
Value-Creating
Behaviors
Marketing Intent
A Clear Path to Value…
Start at the top…Be disciplined about articulating a clear path to value
Go home or get real…Assess your real and perceived barriers to better measurement
Five common barriers have
been identified that typically get in the way
of better measurement
Time-Poor
Analytics-Poor
Process/Governance-Constrained
Data-Poor
Capability-Constrained
The Experts
Harried, but Trying
Horsepower Seeking
Not a Priority
Tactical Outsourcer
Data Starved
Which segment best describes your company?
Test and control…Build a smart & pervasive experimentation capability
0
10000
20000
30000
40000
50000
60000# of Tests Piloted and Executed in a Given Fiscal Year
Adopt an experimentation mindset to both
close your knowledge gaps around current
investments and qualify new
activities
A holistic path forward…Systematically build and improve capabilities, processes, analytics
Analytics
-800
-600
-400
-200
+0
+200
+400
+600
Cable TV
Search
Promotional E-Mail
Outdoor
Guerilla Tactics
Test Spending
Cable TV
Search
Promotional E-Mail
Outdoor
Guerilla Tactics
Test Spending
Total Investment by Vehicle ($M)
Tot
al #
of i
ncre
men
tal O
rder
s
Processes
Investment Management
Process
Investment Management
Process
A: Define Required Results
A: Define Required Results
B: Create Measurable Benchmarks
B: Create Measurable Benchmarks
D: ActD: Act
F: Debrief Success &
Failure
F: Debrief Success &
Failure
C: AuthorizeC: AuthorizeE: AnalyzeE: Analyze
Capabilities
Data & IT Systems Analysis & Metrics Strategy & Content In-Market Execution
Slide 11
The broader horizon…great marketing decisions and bottom line growth
Slide 12
Every Journey… Begins with the First Few Steps
We are at ground zero
1. Find the money and put it in the right buckets
2. Take a first pass at effectiveness evaluation using existing data & tools
3. Commit to a 2-pronged agenda of analytics and experimentation to close your knowledge gaps
We made a few attempts but have stalled
1. Do an audit of capabilities, process and analytics to identify key barriers
2. Put a program in place to address the most pressing barriers
3. Get a clear win by decisively answering 1 or 2 of the highest priority investment questions
We want to turn this into a competitive weapon
1. Embrace experimentation as a critical core competency
2. Focus on efficient processes and tight linkages across the value levers
3. Tackle the sales vs. equity response measurement challenge with gusto