Measure
Demonstrating success.
In the Measurement phase, a relationship scorecard is developed that captures and reports on the full spectrum of meaningful measures.
The single most important question a marketer can ask every day is: “Where should my scarce resources be spent to build the value of my brand most cost effectively?”
Lack of ROI measurement has always been the nemesis of marketers. No other area of business has so many ways to measure success – and so little success at measurement. The problem is that intangible assets like brand equity defy monetization while reliance on market share as the sole determinant fails to show the effectiveness and contribution of different media elements.
Marketers should be held accountable for their spending decisions in two ways: at the customer segment level, where the question that needs to be answered is,” Are my investments paying off in the cumulative effect on lifetime value?”; and at the program level, where the question is, “Were the campaign strategy and channel mix effective in achieving fiscal objectives?"
The only way to prove the economic merits of CRM is to have an integrated measurement system that conclusively establishes the link between market performance and customer loyalty. Without showing that direct correlation, organizations will always have a low pain threshold for CRM as a business strategy.
A hierarchy of cascading marketing measures should be captured in the form of a relationship scorecard. That scorecard will show the asset value of the customer base and enable trend analysis of portfolio gains in customer satisfaction, brand awareness, revenue growth, loyalty and retention.
