All thorough our formative years of learning we are measured for the right answers. All our corporate summative measurements are associated with the final answer, I am not implying that the results are not important enough or as important as the process BUT it is paramount to get behind "WHY?" do these answer needs to be known! How can the answer help us influence our choices and shape the future.
It is a positive step to embrace accountability and measurement, but it may be a huge waste of capability and talent to become slaves to numbers and the analytic models that drive them. As marketers and strategist we need to make judicious choices, based on our knowledge of the past and develop robust processes to shape the future of consumer experiences through brands. As such the fundamental task of how to measure success is upon the strategist. Thus the important element of planning is what to measure? why to measure? and how to measure?
This morning's article in MediaPost - Marketing Accountability: The Long And Short Of It, on our sudden fascination with measures and accountability in Marketing and the long versus short term implications of on Equity & Brand health addresses some for the pitfalls. Some nuggets from the article are listed.
So how are we supposed to use ROI effectively?
- Balance short-term ROI with long term brand equity. And by short-term, we mean within a year and by long-term we mean three years out. A marketing plan requires striking a healthy balance between tactics that yield a high short-term ROI, and those that are essential to driving sales in the long term.
- No long-term gains without short-term. If your advertising doesn't work in the short-term it won't have a long-term impact. Bad advertising fails at the starting gate. But good advertising carries over into the future.
- Understand your audience. Don't put the cart before the horse. Researching how you spend your dollars is effective only after you know whom you should be talking to and what you should be communicating.
