If a Digital Marketing leader could only bring in one analytic tool, my suggestion would be to bring in a financial calculator. CMOs must be able to prove that marketing will close business. This isn’t something to be scrutinized only when the economy is bad or when budget is being cut, it is for the boom times as well. Marketers will continue to be pressed to forecast, benchmark, measure and attribute their efforts towards revenue for all projects and marketing technology investments.
Gartner has predicted that by 2015, digital strategies, such as social and mobile marketing, will influence at least 80% of consumers’ discretionary spending. The potential for Digital Marketing is here. Digital channels are highly addressable, two way communication connections between from company and customer, and better still, customers want this connection. Digital marketing represents more access to measurement and attribution than marketers ever had. Marketers have the technology to understand within minutes, within seconds, if their campaign is going according to plan and can make corrective changes if it is not. However there is a lot of work to do. All marketers need to think “activity based costing” when it comes to their marketing activities as much as they think about the creative side.
The bubble will quickly burst if marketers can only point to “impressions“ or “SMS awareness campaigns” or “fans” and try to pass off as business results. So focus on projects that lead to revenue production. Don’t know them? Ask the CEO what big rocks the company is trying to achieve in the next 12-18 months and build or restructure a Digital Marketing strategy around those. And bring your calculator and prove digital marketing can close business. It can.