Data-Driven Marketing: The 15 Metrics Everyone in Marketing Should Know

323 Pages·2010·4.33 MB·English

by  Mark Jeffery

(continued from front fl ap) Jeffery Includes Downloadable ROI Spreadsheets $29.95 USA/$35.95 CAN
Praise for
Make data-driven
Every marketing department is under pressure
to deliver, but some will thrive and some won’t. Data-Driven Marketing
Data-Driven marketing work for you
D
Data-Driven Marketing provides top-to-bottom
coverage of what works, what doesn’t, and what a
makes the difference in this important but mis- t We live in budget-cutting times, and market-
understood area. Pick up this essential guide a ing budgets are among the fi rst to get cut.
“To paraphrase the old adage: ‘Half of marketing dollars are effective, we just
today and you’ll not only come out on top, but - Why? When non-marketing executives take a
don’t know which half!’ This book changes the marketing game so you’ll really
D
know (and measure) the reason why. hard look at the numbers, they often can’t see
know what’s working and what’s not. The 15 metrics, along with the case examples,
r a tangible link between marketing and overall
are an authoritative toolkit for making better decisions to create new markets, i Marketing
revenue. So if you’re a marketer today, you’re
v
drive revenue, increase customer satisfaction, and improve profi tability.”
probably facing the need to do more with
e
—John M. Boushy, former CEO, Ameristar Casinos, Inc.
less, justify all investments, show results, and
n
still beat the competition. The secret to this

“A groundbreaking combination of research, frameworks, and pragmatic advice M balancing act is having—and correctly using—
for both controlling and radically improving marketing. A must-read for the en-
the numbers.
a
tire marketing organization, from the CMO to the front lines.”
r Data-Driven Marketing uses simple, non-tech-
—Barry Judge, Executive Vice President and
k nical language to help you to master the latest
Chief Marketing Offi cer, Best Buy
e 15 analytical techniques while maximizing your Re-
MARK JEFFERY is the Director of Technology t The Metrics turn on Marketing Investment (ROMI). You’ll take
Initiatives and Senior Lecturer in the Center “Business-to-consumer marketing and business-to-business marketing are i your marketing performance to the next level as
n
for Research in Technology and Innovation very different. Through detailed examples, this outstanding book shows how to you discover:
g
at the Kellogg School of Management. apply data-driven marketing in both worlds for real results. This book is for
•
Why more than 80 percent of companies don’t
He has more than thirty publications in anyone in business, not just marketing, who wants to step up the performance
Everyone in Marketing
make data-driven marketing decisions (and
management, scientifi c, and technology jour- of their marketing.”
suffer for it)
nals, and has published twenty-four original —David G. Bills, Senior Vice President and
•
The 15 key metrics every marketer
case studies with Harvard Business School Chief Marketing and Sales Offi cer, DuPont inTh should know
Publishing. At Kellogg, he directs multiple exec- Ma1e Should Know • The fi ve obstacles to data-driven marketing
utive programs including Strategic Data-Driven “Every year, baseball teams go to places like Florida and Arizona to run through rk5 and how to overcome them
Marketing and Driving Strategic Value from IT, the basics which are the cornerstone of performance excellence. This book is et M • In-depth examples of how to apply data-driv-
and teaches in custom executive programs for the marketing equivalent of taking all those ground balls. An essential read for inet en principles in small and large organizations
many organizations including Microsoft and every marketer who cares about—and wants to improve upon—the science of g Sric • How to use the 15 metrics to improve the
DuPont. He is also the Managing Partner of
their craft.” hs
performance of your campaigns by a
o
Agile Insights LLC, a marketing and technology E
—Derek Ungless, Executive Vice President and uv factor of fi ve or more
consultancy (www.agileinsights.com). Chief Marketing Offi cer, DSW Shoe Warehouse lder • New research insights from the Kellogg
Ky
Jacket Design: Diane Y. Chin no School of Management, America’s leading
on
Jacket Illustration: iStockphoto we marketing business school, surveying 252

Fortune 1000 fi rms, encompassing $53
billion of annual marketing spending
•
Free downloadable ROMI templates for all
Mark Jeffery
Kellogg School of Management examples given in the book
(continued on back fl ap)
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John Wiley & Sons, Inc.
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Copyright#2010byMarkJeffery.Allrightsreserved.
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LibraryofCongressCataloging-in-PublicationData:
Jeffery,Mark,1965-
Data-drivenmarketing:the15metricseveryoneinmarketingshouldknow/MarkJeffery.
p.cm.
ISBN978-0-470-50454-3(cloth)
1. Marketingresearch. 2. Marketing–Mathematicalmodels. 3. Marketing–Casestudies.
I. Title.
HF5415.2.J442010
0
658.83—dc22
2009035908
PrintedintheUnitedStatesofAmerica.
10 9 8 7 6 5 4 3 2 1
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To Ann, Anthony, and Mateo.
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E1FTOC 12/15/2009 16:53:37 Page7
CONTENTS
DOWNLOADABLEROMIRESOURCES XIII
ACKNOWLEDGMENTS XVII
INTRODUCTION XIX
PART I Essentials 1
CHAPTER 1 The Marketing Divide: Why 80 Percent of
Companies Don’t Make Data-Driven
Marketing Decisions—And Those Who Do
Are the Leaders 3
The 15Essential Marketing Metrics 7
Case Examples 9
Marketing Budgets:Key Differences between theLeaders
and the Laggards 17
Using MarketingMetrics to Weather Difficult
EconomicTimes 20
The FirstStep:Defining the Data-Driven
Marketing Strategy 22
Chapter Insights 25
Case Examples: BestBuy, Porsche Turbo
Cabriolet Launch, DuPontTyvekNASCAR
vii
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viii Contents
CHAPTER 2 Where Do You Start? Overcoming the Five
Obstacles to Data-Driven Marketing 26
Overcome Obstacle1: Getting Started—Focuson
Collecting theRight Data andCreate Momentum
byScoringan Easy Win 28
Overcome Obstacle2: Causality—Conduct Small
Experiments 33
Overcome Obstacle3: Lackof Data—Strategies for
ObtainingCustomer Data 35
Overcome Obstacle4: Resourcesand
Tools—Buildthe Infrastructure for
Data-Driven Marketing 39
Overcome Obstacle5: Peopleand Change—Create
aData-Driven Marketing Culture 44
ARoadMapforImplementing
Data-Driven Marketing 49
ChapterInsights 51
CaseExamples: Royal Bank ofCanada, Walgreens,
Continental Airlines, Harrah’s Entertainment
CHAPTER 3 The 10 Classical Marketing Metrics 52
LinkingMarketingActivities toMetrics 53
ABalanced Scorecard forMarketing 62
Facing theB2BMeasurement Challenge 67
ChapterInsights 71
CaseExamples: MasterCard FIFASponsorship,
Microsoft OEMComarketing
PART II 15 METRICS TO RADICALLY IMPROVE
MARKETING PERFORMANCE 73
CHAPTER 4 The Five Essential Nonfinancial Metrics:
#1—Brand Awareness, #2—Test-Drive,
#3—Churn, #4—Customer Satisfaction (CSAT),
and #5—Take Rate 75
ShapingPerception: Metric#1—BrandAwareness 75
ComparativeMarketing: Metric#2—Test-Drive 87