Sunday, October 14, 2012

Survey results from Finland: Measuring the effectiveness of marketing

There was more than 400 people from different size and kind of businesses, who responded to a survey this summer conducted by Zeeland. With one part of the research, we tried to find out how companies are measuring marketing. Here are the top three key findings on that, and my comments.
"One third (33 %) of the companies are setting goals for the marketing."
This might be surprising, but still, it's very common that people have their marketing budget to spend but they don't have to report what (useful) was actually achieved.
"18 % of the companies measure marketing on regular basis."
If you really want to learn and grow your marketing knowledge, you simply have to measure marketing activities on regular basis. Instead of HiPPO, smart people are trying to create data driven decision making process and culture in the organization.
"Only 11 % of the companies measure marketing by sales."
Wow!? Unbelievable. Basically one company out of ten is measuring the effects of marketing activities all the way to sales. If you are not tracking changes of sales, it's impossible to measure return on investment (ROI) or return on advertising spent (ROAS) of marketing.

Then why companies in Finland are not measuring their marketing like they definitely should? You can check out results of my own research I made around a year ago, to find out some of the answers. According to my own experiences and several meetings with marketing executives lately, I can confirm these top reasons:
"Lack of knowledge (in top management), lack of methodologies and lack of time."
There is at least one way to resolve all these problems: find a good partner, consultant or expert who can train, support and help you. :) Like always, feel free to comment on these results or my comments.