…not much right now. Look at these stats from the Fournaise Group about how CEOs value marketing.
• 77% of CEOs are frustrated that their marketers keep talking about brand, brand values, brand equity and other similar parameters that management has difficulty linking back to results that really matter: revenue, sales, EBIT or even market valuation.
• 73% of CEOs say that when they ask their marketing teams to increase marketing ROI, they tend to understand it as cost cutting through better economies of scale or negotiations with third-party partners and agencies, instead of top-line growth generation (more revenue, more sales, more prospects, more buyers) – translation, most marketers don’t truly understand ROI and can’t track it.
• 72% of CEOs state that marketing is always asking for more money, but can rarely explain how much incremental business this money will generate.
• 70% of CEOs stated that marketers bombard their stakeholders with marketing data that hardly relate to or mean anything for the company’s P&L.
Wow, if this is really the case, then CEOs aren’t even thinking that marketing can become more effective. But we know that’s not true. We do know that CEOs care about getting an ROI for lead generation budget dollars spent. We do know that CEOs look at metrics such as revenue, costs, revenue per employee, net profit margin, earnings, and much more. All of these metrics can be affected by marketing effectiveness (of course along with many other factors).
In order for CEOs to care about marketing effectiveness, marketers have to care about impacting the metrics that CEOs care about (such as the ones listed above). Marketers need to start changing their approach to lead management to impact marketing effectiveness. There are three primary ways that marketers can do this.
- Start tracking ROI per lead generation campaign.
- New tools and processes enable marketers to gain visibility to ROI metrics.
- Evolve marketing’s metrics of success.
- It’s no longer enough to provide metrics such as opens and clicks on leads, marketers must take that next step to see if those leads that click actual move into an opportunity and then into revenue.
- Take responsibility for the quality of leads versus just the volume of leads provided to sales.
- To drive the metrics and ROI that is tracked, marketers must start driving quality leads to sales. This objective can be met by implementing the appropriate technology and processes.
Marketing effectiveness doesn’t mean very much to CEOs – but it should, and it can. Marketers just need to understand how they can impact the metrics that CEOs care about and actually take the steps (no matter how small) to get there.