measure the effectiveness of marketing

Marketing departments at technology companies are losing influence in the C-suite, primarily because of their inability to show the effectiveness of their marketing investment. More than 80% of respondents in the CMO Council study said they were dissatisfied with their ability to prove marketing ROI.

'Particularly in technology and telecommunications sectors, the marketing role is often subjugated,' said Donovan Neale-May, executive director of the CMO Council.

Neale-May said the biggest problem is the lack of effective marketing measurement systems. 'You have to show in a very exacting way where and how marketing is impacting the performance of the company and the value of the business,' he said.

Here's how companies surveyed measure the effectiveness of marketing.

  • 30% Revenue per marketing dollar
  • 13% marketing mix model
  • 13% common metrics across marketing group
  • 13% currently creating ROI model
  • 13% Not able to measure
  • 9% Year-on-year programming dollars
  • 4% Sales force productivity
  • 4% Compare spending against competitor

Source: CMOs feel the power.

Steve Johnson

Steve Johnson

Steve Johnson was a founding instructor at Pragmatic Institute, a role he held for more than 15 years before he left to start Under10 Playbook. In his return to Pragmatic Institute, Steve supports the complete learning path for product teams, ensuring they are fully armed for success. 

Over the course of his career, Steve has helped thousands of companies and tens of thousands of product professionals implement product management processes. He has worked in the high-tech arena since 1981, rising through the ranks from product manager to chief marketing officer. Steve has experience in technical, sales and marketing management positions at companies that specialize in both hardware and software. In addition, he is an author, speaker and advisor on product strategy and product management.

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