Measuring digital marketing efforts has never been more important, and while more data is available, finding the time necessary for analysis seems harder than ever. With so little focus on interpreting and applying analytic lessons, many marketers face the data overload challenge—how do you make sense of so much data?
A recent article in McKinsey Quarterly focused on this theme by highlighting the CMO’s real dilemma today: measuring marketing’s true worth in the era of heightened expectations and accountability.
“Metrics are rarely perfect,” says the article, “Yet the volume of data available today should make it possible to find metrics and analytic opportunities that take advantage of your unique insights, are understood and trusted by your top team, provide proof of progress, and lay a foundation for more sophisticated approaches to tracking marketing ROI in the future.”
We couldn’t agree more. Based on our work with leading brands across the telecommunications, automotive, home services, education, financial services, and CPG industries, we can take it one step further: It’s not enough to simply lay the groundwork for tracking future ROI. It’s about investing in the right methodologies, strategies, and programs that harness this data and drive proven, measurable revenue right now.
Without holding marketing efforts directly accountable for ROI, it’s very difficult to close the loop between sales and marketing. With increased pressure on CMOs and the explosion of data, tying digital marketing to revenue is both a true opportunity and an absolute must in 2012.
How are you using hard metrics to measure digital marketing this year?