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Companies using analytics tools are outperforming their competitors. Adobe Marketing Cloud users are seeing even greater results and benefit from 5.3% year-over-year increase in return on marketing investments compared to a 0.4% increase from their peers.
Marketing managers need metrics to assess the performance of their investments in advertising campaigns and other avenues of marketing spend. Marketing metrics refer to the set of measures that assist marketers to quantify, compare and interpret marketing performance.
Marketing managers cannot manage what is not measured; hence managers need to select specific metrics that are relevant to their industry in assessing their performance (Iacobucci 2013, p. 218). Examples of marketing metrics include sales turnover, market share, average prices, levels of consumer awareness and penetration in trial (Iacobucci 2013, p. 218). The picture below presents a myriad choice of KPIs or metrics available for marketing managers to consider in assessing performance.
For example, crucial marketing metrics include leading indicators as the more leads a marketing initiative generates, the more sales opportunities a business has to drive sales growth. However as discussed later, managers should not solely rely on a ‘silver metric’ to assess performance.
Dashboards provide managers the means to oversee multiple measures to optimally manage their companies (Iacobucci 2013, p. 219). A business dashboard is a data visualization tool that displays the current status of metrics and key performance indicators for a business. Dashboards consolidate and arrange metrics or scorecards on a single screen (Iacobucci 2013, p. 218). The essential feature of dashboards is the ability of managers or users of the dashboards to customise the metrics presented on the dashboard over time and across departments.
It should be noted that the metrics used by management to assess marketing performance should not be solely limited to ‘silver metrics’ such as return on investment or discounted cash flows. The reliance on ‘silver metrics’ could result in management forming false diagnoses of marketing performance (Ambler & Roberts 2008, p. 733).
Most high performing management teams utilise the multiple metric approach in designing their dashboards, which bring together multiple measures into a clear integrated and concise package. Marketing managers can simultaneously view a range of metrics on a single page or screen giving an easy-to-read summary of up to twenty key marketing metrics rather than being driven by a single ‘silver metric’ such as ROI (Ambler & Roberts 2008, p. 743).
It was difficult to get a clear picture of our marketing data when it lived in silos. Now, seeing it in an integrated dashboard, we can quickly pinpoint gaps and successes – Guy Fish, Marketing, H&R Block
Some of the reputable vendors of dashboard platforms include IBM Cognos, Oracle and Microsoft. Datorama specialises in developing dashboards to support marketing intelligence.
“Datorama has drastically improved how we measure and analyze all of our marketing activity. It enabled us to quickly centralize our reporting across all of our (previously) siloed data in an easily customizable way. Now, we can automatically produce visual and interactive reports that can be replicated globally across our 60+ entities.” Kyle Webb, Group Digital Analyst, Michael Page
Marketing dashboards generate efficiencies by using the business’ marketing
resources to handle higher value decisions, rather than juggle multiple platforms and agencies. The other benefits of a marketing dashboard include:
- Data aggregation from any channel: Cross-channel insights.Optimize marketing performance. Compare all of your online and
offline marketing and sales channels in a single dashboard.
- Automatic data modeling
- Data Visualization
- Professional recommendations
- KPIs management
- Alerts and notifications
- Various reports options: Easily schedule
automatic reports. Quickly generate
flexible, customized analysis of marketing initiatives’ impact.
- Public and private sharing
- Internal collaboration
A demonstration from Domo, another vendor of marketing dashboards is presented below.
Student name: Amarjit Sidhu ; ID: 93072431
Ambler, T, & Roberts, J 2008, ‘Assessing marketing performance: don’t settle for a silver metric’, Journal Of Marketing Management, 24, 7/8, pp.733-750, Business Source Complete, EBSCOhost, retrieved 18 May 2016, <http://web.b.ebscohost.com.ezproxy-f.deakin.edu.au>
Datorama – Marketing Intelligence, retrieved 23 May 2016, <http://direct.datorama.com/lp3/>