December 21, 2017
Marketers have a new measurement mandate: to measure effectiveness across all channels and tactics by using advanced marketing measurement techniques. Yet, marketers remain in the dark; they are confused, and overwhelmed about the numerous measurement techniques and when to use them. Why? Put it simply, marketers are not analytics experts. They may feel uncomfortable with large amounts of data, confused with complex metrics, and struggle to understand the scope of different marketing measurement models. Regardless of marketers’ lack of analytics expertise, current marketing strategies call for a more sophisticated approach to measure marketing efficacy. So, marketers need to upgrade their marketing measurement knowledge.
Lucky for you, my colleague, Jim Nail and I have given you a beacon to brighten your way to marketing measurement success, in our latest report Master The Mechanics Of Marketing Measurement. We place a spotlight on foundational marketing performance measurement approaches. Here’s a sneak peek of two core measurement approaches:
- In-Market Testing:
- Application – Testing-from a simple two cell A/B test to a full factorial design test–allows marketers to compare multiple campaign versions to identify “champions” and “challengers”. It also provides marketers with a pure form measurement, because it can measure the incremental effect of their campaign.
- Benefits – The ease at which you can apply this technique makes for quick insights that can drive impactful results.
- Statistical modeling:
- Application – Marketers use marketing analytics models to measure marketing performance. These models—like marketing mix, or attribution models– will use advanced statistical techniques to fractionally allocate credit to different channels and/or tactics and provide optimization recommendations for future marketing campaigns.
- Benefits – Provides marketers with a clear view of channel performance, allowing for much greater marketing measurement and planning precision
The proper implementation of these measurement mechanics, particularly in tandem, will take time. However, once you have seen the light on what they can do, there will be no looking back. To learn more about either of these approaches please feel to email me or comment below.