Of perhaps any area in business, changes are coming in marketing – big changes.
That’s because unlike most areas of business – from finance to quality control – marketing has been notorious for failing to give hard numbers. But in the era of Big Data, CEOs and C Suite executives are putting more pressure on marketing to answer this simple question: what’s marketing’s contribution to the bottom line?
This is a threat for marketing – and an opportunity. Marketing needs to change, and to prove its ROI in a universally accepted manner. According to IBM’s Global Chief Marketing Officer survey, 63 percent of respondents believe marketing ROI will become the most important measure of success over the next three to five years.
Many CEOs believe they can’t quantify marketing’s contribution. And they’re increasingly asking the question “What is the return of my marketing investment?” At the same time, some 75 percent of CEOs don’t believe marketers understand ROI. For marketers to survive in this new era, change is essential. Gone are the days of metrics such as brand awareness, impressions, clicks, etc. These are quantifiable metrics, but they often have little – if any – proven link to the bottom line.
Providing exact proof of ROI can be challenging for marketers, who often feel they don’t have a top-down view of enterprise-wide data. Even at the most successful enterprises, only 44 percent of respondents feel sufficiently prepared to manage the increasing importance of ROI. Marketers will increasingly find themselves struggling to justify their budgets- and prove their financial impact on the business.
But these changes can become an opportunity. By shifting the focus to data and ROI, marketing is in a unique position – for example – to provide valuable customer intelligence that will benefit the entire enterprise. Leveraged properly, Big Data from marketing can help secure the “seat at the boardroom table.”
This is an excerpt from our exclusive new eBook, “10 Essentials for Proving Marketing ROI”. Get your free copy of this expert resource now.