Learn then execute. Learn then execute. CMOs and marketing leaders today are increasingly trying to close the gap between learning and creating impact through revenue planning and execution.
Marketing performance management (MPM) encompasses the technologies and processes that enable marketing leaders to reduce cycle times between learning and execution. In this post we'll introduce a process to evaluate and improve your MPM.
Acing Marketing Planning And Strategy
Marketing performance management takes a focused approach to measurement and planning. Marketing leaders need to make sure that valuable information is generated from touchpoints data and that the data is put to use during the annual planning process.
The MPM framework we use to keep ourselves organized is made of three stages: Measure, Plan, and Execute. Each stage has objectives and supporting technologies.
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Let's dive deeper into marketing performance measurement. Doing good marketing measurement requires first understanding information gaps and needs. Information comes in many forms and has several characteristics worth keeping in mind when evaluating your information needs.
Accurate: Information must always be correct and variables should be operationalized correctly.
Timely: Decisions are timebound and informationed needs to be generated and available on time, i.e. at the point decisions are made.
Current: Information can be either historic or new. New information is required where fast response is necessary, e.g. emerging market trends and changing customer preferences. Historic, "old", information is required for forecasting.
Aggregated: Raw data is granular, aggregated data allows for broad understanding of trends. Information can be aggregated around time (e.g. quarters or years), or it can be aggregated by topic (e.g. industry, product line, or customer segment).
Scoped: Information can be broad in representation, similar to high level aggregation. Scoped information is trend information that is highly actionable. It can be a combination of information aggregated around different topics and time which result in broad insights and learnings. By far an important need for leaders.
Are there any characteristics of the information you receive that seems lacking? Does information lack accuracy or timeliness? Reviewing your information needs as a marketing leaders is a good step in building a strong marketing planning strategy and MPM approach.
Once information needs are defined it's time to setup a measurement process that generates your information. Then it's time to create a marketing plan. We cover both of these processes in the ebook at the end of this post.
Success With Marketing Performance Planning
A marketing plan is not a random act of marketing written down on paper. It's a plan to reach a certain level of performance.
What is performance? We use a narrower definition of “performance” and refer to it as the quantifiable distance towards hitting a target in units like time or revenue. Intuitively, high performance refers to being close to or exceeding your goal.
This contrasts with executing with efficiency and precision as a definition of high performance. High performance in MPM focuses on the measurable outcome of marketing: revenue, logo’s, and retention within a specified time period. Marketing performance plans should always include targets that are based on metrics like the ones describe above.
To get a complete overview that bridges the gap between measurement and planning strategy we created the CMO's Guide To Marketing Performance Management.
MPM is much more than a single framework and is also a reflection of your leadership style. Get the ebook below to learn marketing performance management and evaluate opportunities to create an even larger impact on revenue.
Included is an annual planning checklist and detailed frameworks for improving revenue generation. It also includes an in depth overview of Revenue Planner, a revenue planning tool for CMOs based on machine learning.