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  • Rocking the Boat: Marketing Best Practices for the 21st Century

    © 2014 Demand Metric Research Corporation. All Rights Reserved.

    Best Practices Report

    By Jerry Rackley, Chief Analyst

    June 2014

  • 3

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    Introduction

    Modern Marketing Dilemma

    Current Marketing Challenges

    Modern Marketing Performance Management

    Practical Attribution Application

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    25

    Our Best Practices Report Methodology

    About Adometry by Google™

    About Demand Metric

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    Successful Marketing Leadership

    About the Research Analyst

    TABLE OF CONTENTS

  • INTRODUCTION

    3

    Best Practices Report: 21st Century Marketing Manifesto

    © 2014 Demand Metric Research Corporation. All Rights Reserved.

    Marketers have long been challenged to prove how their

    actions, campaigns and initiatives are responsible for

    generating business results. This isn’t a new challenge – late 19th

    century retailer John Wanamaker, a marketing pioneer considered by

    many as the father of modern advertising, once said, “Half the

    money I spend on advertising is wasted; the trouble is I don’t know

    which half.”

    Intuitively, marketers understand that their efforts influence

    business results, but marketers have not endeavored to learn

    the degree to which they do so for a variety of reasons. Some

    haven’t had to, because strong business results let them off the

    hook. More than a few fear knowing the truth. Others don’t feel

    they have the resources to pursue an answer, and still others believe

    that understanding the relationship between marketing efforts and

    business results is unknowable with any degree of precision.

    Whatever the reasons, the myth that marketing cannot truly

    understand the impact of what it does perpetuates.

    Challenging the abilities of the marketer is the increasingly

    complex customer journey. A larger portion of this journey is

    intentionally completed without vendor interaction and therefore

    hidden from the marketer. It is the norm for it to occur across

    multiple devices and through a multi-channel media stream.

    The old marketing order believes that it’s too difficult to

    understand or measure the influences holistically during the

    customer journey. The customer journey seems like a black box –

    the prospect enters it an immediately disappears from sight. We

    toss content, digital experiences, and every creative tactic we can

    into that black box hoping the prospect stumbles across them.

    Sometimes the prospect exits the black box and becomes a

    customer, but other times not. It seems there’s no way of knowing

    which content, through which channel influenced the prospect

    while inside the black box, so marketers must use their instincts and

    what little intelligence we can glean to tweak what we throw into the

    black box. At best, we see some incremental improvements,

    and there’s tremendous uncertainty about connecting

    activities to results.

  • 4

    Imagine the power of connecting these dots, of knowing the causes and effects of marketing’s work.

     How much more intelligently could we optimize the multi-channel mix most of us use?

     How much farther could we stretch our marketing budgets by knowing what really isn’t working and exactly what is?

     How easy would justifying the marketing spend be when we’re not guessing which efforts produced results, and to what degree?

     How would it feel to be right at home in an ROI discussion about our work?

     When someone asks, “what have you done for us lately?” to have an authoritative answer that puts to rest any doubt?

    This is the new marketing order, and it’s not futuristic science fiction, but something marketers can embrace here and now.

    The purpose of this manifesto is to express the vision for this new marketing order and call marketers to it. In this data-driven, multi-channel

    marketing world in which we now operate, marketers can eliminate the guesswork about how their activities are creating results.

    To accomplish this goal, this manifesto will discuss the modern marketing dilemma and status quo, and then describe the different

    kind of thinking required to manage modern marketing performance.

    Best Practices Report: 21st Century Marketing Manifesto

    © 2014 Demand Metric Research Corporation. All Rights Reserved.

  • In the history of marketing, there has never been a more exciting,

    challenging, rewarding and apprehensive time for the marketing

    profession than right now. Clare Price, VP of Research at Demand

    Metric, puts it this way in the 2014 Outlook Study:

    “More than ever before, Marketing has direct control

    over the sales/buying process and with it the

    customer journey. That change has given Marketing

    more opportunity to prove its value to the company,

    while at the same time increasing pressure to deliver

    results with measureable advances in performance

    and productivity.”

    The set of things about which the modern marketer is concerned

    with simply continues to expand. Consider just the tools and

    technologies marketers have at their disposal, as illustrated in

    Marketing Technology LUMAscape (Figure 1, Page 6) published

    by Luma Partners in 2014.

    MODERN MARKETING DILEMMA

    © 2014 Demand Metric Research Corporation. All Rights Reserved. 5

    A More Complex Customer Journey

    Another challenge to the modern marketer is the evolution of the

    customer journey, which now occurs not just through multiple

    channels, but multiple devices as well.

    Multi-channel Marketing

    There was a time when marketers would direct mail a piece to a list

    of prospects, and then wait for responses. Marketers could easily do

    the analytics and tracking to match responses to the mailing,

    determine the conversion rate, cost to acquire a customer and the

    ROI. It was easy to understand what produced the conversion,

    because not only was it the last thing the consumer saw, it was the

    only thing the consumer saw.

    When the internet evolved into a marketing platform, the old

    metrics were used, with help from cookies and tags to track

    everything and detect conversions. Initially, this approach worked,

    but as the number of online channels continues to proliferate,

    the challenge for the marketer is to get clarity of insight into

    what’s happening because of this media stream.

    Best Practices Report: 21st Century Marketing Manifesto

    http://www.demandmetric.com/content/2014-marketing-outlook-study-highlights-horizons http://www.demandmetric.com/content/2014-marketing-outlook-study-highlights-horizons http://www.demandmetric.com/content/2014-marketing-outlook-study-highlights-horizons http://www.demandmetric.com/content/2014-marketing-outlook-study-highlights-horizons http://www.demandmetric.com/content/2014-marketing-outlook-study-highlights-horizons

  • 6 Figure 1: Marketing Technology LUMAscape; Published by Luma Partners, 2014

    Best Practices Report: 21st Century Marketing Manifesto

  • 7

    Which elements best create awareness, promote and produce

    conversions?

    The influence of the old way of assigning credit for conversion

    persisted: last click attribution. This form of attribution assigned

    full credit for conversion to the last piece of media in the stream,

    regardless of how diverse the media stream was. But marketers need

    a much more precise understanding of how all media is performing,

    so they can make better decisions and develop better strategies and

    tactics.

    Marketing Across Devices

    In addition to the broadening array of channels marketers

    have at their disposal is the proliferation of devices.

    Consuming content across multiple devices is now the norm for

    most people. It may start with a mobile device, but often ends

    somewhere else, as the infographic from Google illustrates in Figure

    2 to the left.

    This proliferation of devices is a boon to consumers, but a

    challenge to marketers that need to track all the activity,

    regardless of which device on which it occurs.

    © 2014 Demand Metric Research Corporation. All Rights Reserved.

    Figure 2: The New Multi-Screen World, Published by Google, 2014

    Best Practices Report: 21st Century Marketing Manifesto

  • The Data Deluge & Big Data Marketing

    With the proliferation of channels and devices comes a deluge of

    data. For marketing organizations that are already very data centric,

    this rush of data is seen as a good thing, although it’s availability still

    poses some challenges. The simple fact is that without data,

    optimizing the media mix can only occur through educated

    guesswork. To have any sort of precise view about media

    performance requires availability o