NAMED BEST MARKETING BOOK OF 2011 BY THE AMERICAN MARKETING ASSOCIATION How organizations can deliver significant performance gains through strategic investment in marketing

In the new era of tight marketing budgets, no organization can continue to spend on marketing without knowing what's working and what's wasted. Data-driven marketing improves efficiency and effectiveness of marketing expenditures across the spectrum of marketing activities from branding and awareness, trail and loyalty, to new product launch and Internet marketing. Based on new research from the Kellogg School of Management, this book is a clear and convincing guide to using a more rigorous, data-driven strategic approach to deliver significant performance gains from your marketing.

• Explains how to use data-driven marketing to deliver return on marketing investment (ROMI) in any organization
• In-depth discussion of the fifteen key metrics every marketer should know
• Based on original research from America's leading marketing business school, complemented by experience teaching ROMI to executives at Microsoft, DuPont, Nisan, Philips, Sony and many other firms
• Uses data from a rigorous survey on strategic marketing performance management of 252 Fortune 1000 firms, capturing $53 billion of annual marketing spending
• In-depth examples of how to apply the principles in small and large organizations

• Free downloadable ROMI templates for all examples given in the book
  With every department under the microscope looking for results, those who properly use data to optimize their marketing are going to come out on top every time.

  Autorentext

  MARK JEFFERY is the Director of Technology Initiatives and Senior Lecturer in the Center for Research in Technology and Innovation at the Kellogg School of Management. He has more than thirty publications in management, scientific, and technology journals, and has published twenty-four original case studies with Harvard Business School Publishing. At Kellogg, he directs multiple executive programs including Strategic Data-Driven Marketing and Driving Strategic Value from IT, and teaches in custom executive programs for many organizations including Microsoft and DuPont. He is also the Managing Partner of Agile Insights LLC, a marketing and technology consultancy (www.agileinsights.com).

  Inhalt

  Downloadable ROMI Resources 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 15 Essential Marketing Metrics 7

  Case Examples 9

  Marketing Budgets: Key Differences between the Leaders and the Laggards 17

  Using Marketing Metrics to Weather Difficult Economic Times 20

  The First Step: Defining the Data-Driven Marketing Strategy 22

  Chapter Insights 25

  Case Examples: Best Buy, Porsche Turbo Cabriolet Launch, DuPont Tyvek NASCAR

  Chapter 2 Where Do You Start? Overcoming the Five Obstacles to Data-Driven Marketing 26

  Overcome Obstacle 1: Getting Started-Focus on Collecting the Right Data and Create Momentum by Scoring an Easy Win 28

  Overcome Obstacle 2: Causality-Conduct Small Experiments 33

  Overcome Obstacle 3: Lack of Data-Strategies for Obtaining Customer Data 35

  Overcome Obstacle 4: Resources and Tools-Build the Infrastructure for Data-Driven Marketing 39

  Overcome Obstacle 5: People and Change-Create a Data-Driven Marketing Culture 44

  A Road Map for Implementing Data-Driven Marketing 49

  Chapter Insights 51

  Case Examples: Royal Bank of Canada, Walgreens, Continental Airlines, Harrah's Entertainment

  Chapter 3 The 10 Classical Marketing Metrics 52

  Linking Marketing Activities to Metrics 53

  A Balanced Scorecard for Marketing 62

  Facing the B2B Measurement Challenge 67

  Chapter Insights 71

  Case Examples: MasterCard FIFA Sponsorship, Microsoft OEM Comarketing

  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

  Shaping Perception: Metric #1-Brand Awareness 75

  Comparative Marketing: Metric #2-Test-Drive 87

  Loyalty Marketing: Metric #3-Churn 91

  Customer Satisfaction: Metric #4-CSAT 96

  Campaign Effectiveness: Metric #5-Take Rate 99

  Chapter Insights 103

  Case Examples: Philips Consumer Lifestyles, Navistar America's Greenest School, Porsche First Mile, Intel, Ray-Ban, Lexus, Dental Care Partners, DSW Shoe Warehouse Downloadable Excel Templates: Churn, Take Rate

  Chapter 5 Show Me the ROI! The Four Essential Financial Metrics: #6-Profit, #7-Net Present Value (NPV), #8-Internal Rate of Return (IRR), and #9-Payback 104

  Metric #6: Profit 105

  Finance for Marketing Managers: Metrics #7-NPV, #8-IRR, and #9-Payback Defined 106

  Return on Marketing Investment (ROMI) Framework for Management Decisions 115

  ROMI for Sports Sponsorship 119

  ROMI for a New Product Launch 122

  Stress-Test the Numbers: Sensitivity Analysis 129

  Chapter Insights 133

  Case Examples: Sports Sponsorship and Web New Product Launch ROMI (Disguised) Downloadable Excel Templates: NPV, IRR, Payback, Campaign ROI, Sports Sponsorship ROI, New Product Launch ROI, Table Function Sensitivity Analysis, Monte Carlo Analysis

  Chapter 6 All Customers Are Not Equal: Metric #10-Customer Lifetime Value (CLTV) 134

  Metric #10-Customer Value Defined 135

  The New Marketing Strategy: Value-Based Marketing 138

  Balancing Short- and Long-Term Customer Profitability 146

  Customer Life Cycle Management 151

  Chapter Insights 154

  Case Examples: Sainsbury's, 3M, Continental Airlines, Royal Bank of Canada, Carnival Cruise Lines Downloadable Excel Template: Customer Lifetime Value

  Chapter 7 From Clicks to Value with Internet Marketing Metrics: #11-Cost per Click (CPC), #12-Transaction Conversion Rate (TCR), #13-Return on Ad Dollars Spent (ROA), #14-Bounce Rate, and #15-Word of Mouth (WOM) 156

  CPC versus CPM: Optimizing Metric #11-CPC Is the Google Innovation 157

  Optimizing Sponsored Search: Metrics #12-TCR and #13-ROA 159

  How Good Is Your Web Site? Metric #14-Bounce Rate 168

  Changing the Internet Search Marketing Game with Attribution Modeling 172

  Beyond SEM: Internet Display Advertising Impact 176

  Hypertargeting Display Advertising in Social Media 178

  Metric #15-Word of Mouth (WOM) Social Media Marketing Engagement 181

  Chapter Insights 186

  Case Examples: Google, Air France, Opinmind, Meteor Solutions, Palm Centro, Capcom Resident Evil 5 Downloadable Excel Templates: Search Engine Marketing Metrics (CPC, CTR, TCR, Take Rate, ROA), Air France Click Data, Google ROA Impact, Bounce Rate, Word of Mouth (WOM)

  Part III The Next Level 187

  Chapter 8 Agile Marketing: Using Near-Time Data to Improve Performance by a Factor of Five or More 189

  If You Are Going to Fail, Fail Fast 190

  Design for Measurement 196

  Chapter Insights 200

  Case Examples: Microsoft Security Guidance, DuPont Performance Alliance

  Chapter 9 Wow, That Product Is Exactly What I Need! The Three Essential Approaches to Analytic Marketing 201

  The First Essential Approach to Analytic Marketing: Propensity Modeling 202

  The Second Essential Approach to Analytic Marketing: Market Basket Analysis 206

  The Third Essential Approach to Analytic Marketing: Decision Trees 207

  Timing Is Everything: Event-Driven Marketing Case Examples 214

  The Business Case for Analytic Marketing 218

  Chapter Insights 220

  Case Examples: Meredith, EarthLink, DIRECTV, National Australia Bank, Ping Golf Downloadable Excel Template: Analytic Marketing ROI Downloadable SAS File: EarthLink Retention Marketing

  Chapter 10 What's It Going to Take? Infrastructure for Data-Driven Marketing 222

  Which Data …