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marketing percentage. Marketing Performance Strategies

Practical guide

Your key indicators are your results. I think you will agree that you cannot move forward if you do not know where you are now. Unfortunately, many entrepreneurs realize this too late…

Do not consider key indicators? Expect trouble!

For 10 years of his entrepreneurial activity I participated in the creation of 10 different companies:

sale of commercial real estate;
sale of rolled metal products;
sale of houses from a bar;
dentistry;
automobile portal (publishing house);
marketing agency;
sale of video surveillance systems;
organization of events;
pension broker;
center for the development of educational projects.

Only 3 out of 10 companies have survived to this day and are successfully developing. The main reasons for the failure of other projects are cash gaps, lack of money for development, growing accounts receivable etc.

Now I can say with confidence that the main troubles were brought by the absence financial planning. That is, such planning, in which everything is subject to numbers and analytics.

To date, our agency serves more than 130 projects. And I had a chance to get to know each of these businesses very carefully. With great regret, I can say that only 10% understand why it is necessary to calculate key indicators and apply financial planning.

What and how to count

I know that an entrepreneur often does not have enough time for this work. But let's figure it out together why you need to know what key indicators you need to calculate and based on what to make decisions.

Let's consider the simplest example.

Input data

Imagine that you have an English language school.

The cost of 1 month of training is 10,000 rubles.

contextual advertising in Yandex;
targeting advertising in social networks;
outdoor advertising (lightboxes in the subway).

The profit is less than 100,000 because taxes, rent and wages must be paid.

Imagine that you have 30,000 rubles left for personal needs.

On the one hand, you have a profit, which means you are on the right way. The only problem is that there is no room for maneuver.

Solution

The first thing to do is to measure the effectiveness of each advertising channel separately.

If you have any questions about how to properly measure the effectiveness of advertising channels, then write to me on my personal address vi [email protected] I will make a special video on this topic.

The simplest thing is to install a separate phone with the ability to record all incoming calls for each advertising channel. To solve this problem, you can use special services - for example, such as zadarma.com.

This way you can determine how many new customers came from each of the 3 advertising channels. I assure you that quite a lot of new customers come by recommendations, that is, without the participation of paid advertising.

Have you calculated how many new customers came from this or that advertising channel? So, you just need to understand how to redistribute the advertising budget depending on the return.

Therefore, the first indicator that you need to consider is the return on marketing investment.

ROMI (Return on Marketing Investment) is the rate of return received as a result of the cost of marketing activity.

Formula: ROMI = (revenue - expenses) / expenses * 100%

Example: we consider the effectiveness of one advertising channel (Yandex.Direct), with the help of which we attracted 10 customers. These clients bought courses from us for 100,000 rubles. At the same time, the advertising budget of the campaign amounted to 110,000 rubles.

Then ROMI = (100,000 - 110,000) / 110,000 = 0.9 * 100% = 90%

It turns out that we went to minus 10% of the money invested. Since we do not need losses, we stop advertising in Yandex.

But everything is not as simple as it might seem at first glance. The second most important financial indicator enters the scene. This is the profit that the client will bring for the entire time of cooperation.

LTV (Lifetime Value) - total profit company received from one client for the entire time of cooperation with him.

Formula: LTV = customer revenue - the cost of attracting and retaining a customer

The purpose of this indicator is to clarify the true value of the advertising channel, taking into account how much money each will bring us. new client for the entire time of cooperation with him.

How many students do you think will continue after the first month? If you have quality education, then more than half of the students will transfer to the next month. And now let's calculate how this will affect the overall picture of our progress.

Example: we invested 110,000 rubles in attracting 10 new students through Yandex.

In the first month, we earned 100,000 from 10 sales. And in the second month - another 50,000 from those who continued to study. That is, in total we earned 150,000 rubles.

In total, we got LTV + 40,000 rubles. Accordingly, it makes sense to continue to advertise your courses using Yandex.

If something cannot be measured,

then it can't be controlled.

and if it can't be controlled,

then it can't be improved

Bill Hewlett

If we measure our key indicators, then we can influence them. So, we can only improve them.

I hope this article was useful to you and clarified a little why you need to measure the effectiveness of each advertising channel and the value of the client at all stages of interaction with him. In the next part of this material, I will tell you about such indicators as:

cost of attracting a new customer CAC (Customer Acquisition Cost);
conversion rate CR (Сonversion Rate).

If you still have any questions on the topic of this material... Or have any wishes for the content of the second part of the article... Leave them in the comments, I will definitely answer them!

Enter your text he

Remember John Wanamaker's famous phrase: “Half the money I spend on advertising is not doing any good. The problem is, I don't know which half?

No matter how funny, but this statement is the motto of many domestic representatives of small and medium-sized businesses, who still perceive marketing as a kind of ephemeral science.

Not knowing and not understanding what marketing indicators really need to be measured when conducting marketing activities, companies are really throwing money away.

But the most important indicators not so much! Yes, and it is absolutely not difficult to analyze them, the main thing is to do it regularly.

Therefore, I decided to highlight the most important marketing indicators for small and medium businesses and show how to calculate them.

The most important marketing metrics

#1 - Allocation of Marketing Investments

The distribution of marketing investments is the basis of the fundamentals of marketing planning. You can act like Wanamaker (however, many entrepreneurs do this) and say that I will allocate $ 500 per month for marketing, but I don’t know how they are used. But then you should not be surprised that some of them go to the wind.

Your marketing budget should be fully mapped out on a marketing calendar, indicating what % of the budget is used in each marketing channel, as well as what goals you expect from each campaign.

In this way, you will be able to identify more effective acquisition channels and invest in them.

Let's look at a small example.

Budget, $	500

Channel	Placement period	Investments, $	Investments,%	Response Goal	Result	Goal for customers	Result
Facebook Ads	1.06-30.06	200	40%	200	350	5	7
Banner on blog X	1.06-30.06	50	10%	100	50	2	1
contextual advertising	1.06-30.06	150	30%	500	450	10	18
Paid announcement in the VK group	1.06-30.06	100	20%	300	150	9	4

Get a marketing budget allocation template by reposting an article.

The cost of attracting 1 client is one of the most important indicators.

The cost of attracting a client is calculated quite simply. You need to divide the cost of a marketing campaign (the amount of marketing investment in a particular customer acquisition channel) by the number of customers attracted.

In our case, the cost of attraction for each channel is:

Now, having calculated the cost of attracting a client, we see that despite the fact that we received almost 2 times more clients from Facebook than from VK, the latter cost us less. And, therefore, investments in the VK channel will pay off faster.

#3 - Payback Period

To understand how quickly the investment in attracting a new client will pay off (and whether it will pay off at all), it is important for us to know a few additional indicators.

Average sales amount

This indicator can be found quite simply by taking sales statistics for the same period last year, or for the previous month. The average sale amount is calculated by dividing the amount of sales by the number of customers who made a purchase.

% markup
Number of purchases per year

Now let's return to our example and calculate how quickly the investment pays off for each attracted client.

Marketing budget, $	500

Channel	Placement period	Investments, $	Investments,%	Response Goal	Result	Goal for customers	Result	Cost of 1 client, $	Payback period, months
Facebook Ads	1.06-30.06	200	40%	200	350	5	7	29	2,08
Banner on blog X	1.06-30.06	50	10%	100	50	2	1	50	3,64
contextual advertising	1.06-30.06	150	30%	500	450	10	18	8	0,61
Paid announcement in the VK group	1.06-30.06	100	20%	300	150	9	4	25	1,82


Period, months	12
Average bill, $	30
Number of purchases per year	11
Number of purchases per month	0,92
% markup	50%
markup, $	15

From our example, it becomes clear that attracting customers through VK pays off a little faster than advertising on Facebook. And our initial conclusion that the budget for paid announcements in VK should be cut is premature.

In practice, performance evaluation marketing activities enterprise is reduced to the fact that already calculated and proven postulates are applied.

Firstly, this is the isolation of the developed methods from reality. Trying to lump together everything that a marketing department should be doing leads to an overly abstract methodology.

Secondly, the complexity of implementing methodological developments in practice: we need human resources, time and money. The costs of conducting all the necessary research to evaluate marketing activities often become comparable to the size of the marketing budget.

Third, many methodologies operate with information that is not needed in everyday professional activity. Then the assessment becomes an end in itself, for the sake of which it makes no sense to conduct research.

The role of marketing and its contribution to the achievement of the main goal of any commercial firm to increase profits is limited. Traditionally, marketing is a subsystem of a commercial service, and its task is to sell a product in a given volume, at a given price, in a certain geographical region in the allotted time. Three evaluation parameters that can adequately reflect the effectiveness of marketing activities are:

market share;
fame and image trademark;
consumer loyalty.

Analysis of these parameters, comparison of their actual and planned values can show how marketing service coped with the task, in which area to look for the cause of failures, where there is a reserve for growth. The data obtained is key to formulating a strategy further development. Let's take a closer look at each parameter.

The level of fame and, as a result, the image of the brand reflects the contribution of marketing to the communication activities of the company. If market share is the money that the company already has at the moment, then fame (reputation, image) is what provides today's share and determines its positive change in the future. The fame of a trademark, unlike the market share, is an abstract concept, it cannot be "felt", it is difficult to correctly assess and, moreover, convert it into banknotes. If it is not evaluated, then brand management, in particular brand awareness management, will be ignored, which is in fact a rejection of the strategic vision of marketing. That is why brand awareness is proposed to be taken as one of the key parameters for evaluating marketing activities.

At all fame for its "immateriality" trading stamps closely tied With indicators commercial activities companies: revenue, turnover, market shares. For a specialist does not represent special work derive the dependence of the company's revenue on the level of its popularity or the popularity of its product. This dependence can be built on the basis of a survey of consumers about which brands of a certain product they know and which brand products they use constantly. The resulting dependence will allow you to determine how much brand awareness should be increased (as a percentage of the target audience) in order for revenue to increase to a given level.

Loyalty buyers Can interpret How degree insensitivity goods To actions competitors accompanied emotional commitment To product. This indicator characterizes the quality of the work of the marketing department with customers and determines the level of development and organization of the marketing department itself. The tasks of increasing the company's market share and fame can be solved in an extensive way: invest more money in advertising, expand the staff of marketing specialists, develop new products, consumer segments, geographic markets. Another way is intensive, when revenue increases on one product and consumer segment due to better construction of work. Customer loyalty is a parameter for assessing not only the effectiveness of marketing activities, but also the quality of the work of the marketing department.

During the year, the average company loses about 10% of its customers. In practice, it is not uncommon for the customer loss ratio to reach 60-70%. This means that the company annually loses more than half of its customer base. Faced with the problem of insufficient demand, the company is forced to invest more and more money in advertising, conduct programs to stimulate demand, and use additional resources of the client department. The reason is the poor quality of customer service. Consumer loyalty can be determined through the retention rate - the ratio of the number of regular customers to the number of current ones. It has been calculated that a 5% increase in customer retention rate can increase profits by 15-25%. Unlike measuring market share and brand awareness, consumer loyalty does not require information from the market, there is no need to marketing research. All data must be contained in the company's information system. No such data? Is there such a system? Do they differ if collected from different sources? This means that the work of the marketing department is poorly organized.

If customer loyalty can be assessed by the company's own efforts, when implementing a project to increase it, third-party specialists cannot be dispensed with. Such a project usually involves setting up a customer relationship system and building a marketing strategy. information system. The first part of the project includes the development of a normative business model using client-oriented technologies, optimization of the workflow system, adjustment of the sales staff motivation system, introduction of a normative model. The second part involves the development of a system of indicators of the state of internal and external marketing environment company, regular collection of information, determination of the procedure for acceptance management decisions.

So, to estimate work department marketing, Can use system three indicators, which already mentioned. These are market share, brand awareness and customer loyalty (retention rate). The data obtained make it possible to characterize the current (market share) and strategic work of the marketing department (brand awareness), to assess the quality of the organization of its work (consumer loyalty). It is impossible to reduce the complexity of obtaining information for evaluation, but the very fact of its absence in the marketing department characterizes its work extremely negatively. This means that none of the tasks assigned to the department is justified. It may be unattainable, unrealistic, or simply not needed. It is necessary to evaluate any type of activity, including the work of the marketing department, from the standpoint of achieving / not achieving the goals.

Also provided opportunity lead analysis marketing shares And events - newsletters, publications, advertising, seminars, any others impacts on clients.

Thus, the compilation of a methodology for assessing the effectiveness of the marketing activities of an enterprise comes down to setting research objectives in which these methods will be used, for which it is necessary to determine the objectives of the study, which will narrow the range of research objects and, as a result, reduce research costs.

The development of the company's strategy is carried out in conditions of uncertainty. Moreover, uncertainty is generated both by processes outside the organization and within it. The external environment is characterized by the instability of the factors that force the organization to change. Uncertainty internal factors is determined by the interconnection and interdependence of the components and subsystems of the organization as a complex system. However, it is impossible to model the behavior of complex systems accurately and in detail; one can only identify and foresee the tendencies of their self-development. This results in the following differences between strategic and operational management: the discontinuity and consistency of the management process, as well as the predominance in strategic management"soft" problems, i.e. those that are characterized by the uncertainty of the initial parameters and boundary conditions. Discontinuity means that strategic decisions accepted, not so often, and their implementation takes a long time, sometimes several years. Very serious reasons are needed to suspend the development of a strategy already adopted for implementation. Operational management is less intermittent, planning is carried out daily, tasks are short-term; it deals mainly with "hard", specific problems.

At strategic planning important on early stages process nominate And consider maximum possible quantity alternatives. This procedure reduces the risk of planning errors, which can be costly. However, the more alternatives, the more time and effort is required to evaluate them. In the case of operational management, managers deal either with well-structured, "hard" problems, the solution of which is programmed, or with "soft" decisions, but with a low risk of serious damage if an error occurs.

To develop a strategy, a large amount of information is needed from various sources and about a wide variety of processes, both in the external environment of the organization and in internal organizational systems. In this case, it is possible to make wider use of machine information processing and automated systems management.

During the implementation of a marketing strategy, it is important, on the one hand, to try to stick to the original plan and at the same time show some flexibility if changes external environment dictate the need for adjustment. Monitoring a marketing strategy involves evaluating its results, comparing them with targets, and choosing corrective actions to correct an ineffective or improve a successful strategy.

The modern concept of marketing strategy is that all activities of the enterprise are based on knowledge of consumer demand and its changes in the future. Moreover, one of the goals of marketing is to identify unsatisfied customer requests in order to orient production to meet these requests. The marketing system puts the production of goods in a functional dependence on requests and requires the production of goods in the assortment and quantity required by the consumer. That is why marketing, as a set of established methods for studying markets, in addition, still directs its efforts to create effective distribution channels and conduct integrated advertising campaigns.

The leaders of modern enterprises of the Republic of Kazakhstan need not only to study the concept of marketing, but also to be able to use it, this is how you can achieve an increase in the effectiveness of the marketing activities of the enterprise.

The effectiveness of marketing is evaluated for the strategic period. That is, the solution is most effective if the degree of achievement of the goal is greater, and the cost of its implementation is less. This is the ratio of such final indicators of marketing activities as

Profit,

Volume of sales,

Market share

to marketing costs. Thus, it is assumed that positive results can be achieved not by the effective work of marketing, but due to favorable circumstances. Second aspect. Marketing effectiveness as a performance characteristic The effectiveness of marketing is determined by complex methods that are based on qualitative assessments. That is, how the result corresponds to the goal that was planned. For example, such estimated indicators as the number of transactions per one visit of the marketer. That is, they clearly demonstrate precisely marketing activities. To each component of marketing activity, namely

Philosophy of consumer orientation,

The adequacy of marketing information,

Integrated Marketing Organization,

Efficiency in managing marketing activities and

Strategic information, a description of a set of specific indicators is applied. The effectiveness of marketing is determined on the basis of the received data. Organization of marketing service

The effectiveness of marketing largely depends on the organization of the marketing service. Organization of the marketing service consists of the following steps:

1.Selection of personnel.

2. Distribution of functions.

3. Information and technical equipment.

4. Providing jobs, the necessary information.

5. Motivating the work of employees.

The work of the marketing service is very important for the organization. It allows you to concretize the final results of the organization and express them in the final performance indicators. In practice, the evaluation of the effectiveness of individual sectors of the components of marketing activities is mainly carried out.

1. Indicators of market efficiency. These indicators evaluate external market conditions and the attractiveness of markets. These include growth rate, market share, market attractiveness, industry attractiveness and potential market demand.

2. Indicators of competitive efficiency. These external indicators demonstrate the competitiveness of the company's products. These include the firm's performance in relation to offering a competitive price, product and service quality, brand and cost.

3. Indicators of the client's activity. These external indicators characterize the effectiveness of cooperation with consumers. These include evaluation of satisfaction, retention, loyalty, customer awareness and perceived customer value.

Profitability equity(ROE)- attitude net profit to the average equity for the period.

ROE = Net profit / Equity * 100%

Return on invested, permanent capital (ROIC)- the ratio of net operating profit to the average for the period of own and long-term borrowed capital.

ROIC = EBIT*(1-Income Tax Rate)/Invested Capital * 100%

IRR (Internal Rate of Return, IRR) determines the maximum cost of capital raised, at which investment project remains profitable.

For a long time, marketing science has considered the problem of evaluating marketing performance and marketing effectiveness as one of its research priorities. The problem of developing marketing indicators covers a fairly wide range of research and practical aspects of marketing, such as assessing the return on marketing investment, describing the structure and relationship between internal marketing and financial indicators, assessing client assets, brand assets, long-term and short-term effects from marketing costs, etc.

Marketing theorists and practitioners have developed many metrics to measure marketing.

At the same time, the standard scheme or standard set indicators do not exist, as indicators should reflect marketing strategies. These strategies are different, respectively, and the set of marketing metrics will be different. However, some of the indicators are quite universal and applicable to the activities of any company.

Table 2.1. marketing metrics that are most often used in annual reports European companies.

Table 2.1. Most commonly used marketing metrics, %

Metrics	Percentage of firms using measurements	Percentage of firms reporting measurement results to the board of directors
Awareness
Market share (volume or value)
Relative price (value/volume of market share)
Number of complaints (level of dissatisfaction)
Customer Satisfaction
Distribution/availability
Total number of buyers
Perceived quality/reputation
Loyalty/retention
Relative perceived quality

The table shows how the ideas about marketing activities differ between marketers and members of the board of directors. The most popular indicator among marketers is that awareness is of least interest to the board of directors. Conversely, the level of retention and relative perceived quality for board members are of most interest. This is not surprising, since these metrics are indicators of the sustainability and prospects for the business as a whole.

Figure 2.2 shows the Wharton School of Business scorecards, which are grouped into a closed polycentric structure with the consumer at the center.

Share in minds, emotions and market - the core of the system of indicators. This block characterizes the position of the company in the market (market share), the level of competition, as well as the perception of the brand by consumers (brand development index, satisfaction, awareness, etc.).

Margin and profit - performance indicators of operating activities. These are incomes and their structure, variables and fixed costs, costs by origin, break-even analysis and various kinds arrived.

Product and Portfolio Management - Product strategy metrics, including testing, growth, cannibalization, and brand asset metrics.

Customer profitability - the value of the individual client and the relationship with him.

Human resources and distribution channels management - organization of the sales department, sales effectiveness, payment systems. The level of coverage by distribution channels.

Pricing strategy - price sensitivity and price optimization in order to maximize profits.

Promotion - effectiveness of price promotions, coupons, trade credit, discounts.

Media and Web - advertising performance indicators, including frequency, reach, ratings, impressions. Special indicators for evaluating the effectiveness of Web-companies.

Marketing and finance - financial estimates marketing programs.

Rice. 2.2.

Professor M. Jeffrey from the Kellogg School of Business suggests using 15 indicators that allow you to comprehensively evaluate the effectiveness of marketing:

1) brand awareness;
2) consumers who tried the product before purchase (test-drive);
3) the level of customer churn (churn);
4) level of satisfaction (CSAT, customer satisfaction);
5) the rate of attraction (take rate);
6) profit (profit);
7) net present value (NPV);
8) internal rate of return (IRR);
9) a lesson on return on investment (payback);
10) customer lifetime value (CLTV);
11) the cost of one click (Cost per click);
12) conversion ratio" (TCR, transaction conversion ratio);
13) return on investment in advertising (ROA, return on ad dollars spend);
14) number of bounces2 (bounce rate);
15) word of mouth marketing3 (WOM, Word of Mouth).

The first 10 metrics are classic marketing metrics: 1 to 5 are the most important non-monetary metrics, 6 to 10 are financial indicators. The last five metrics are the so-called "metrics" new era marketing", mainly Web analytics: 11-13 - metrics that evaluate search engine performance, 14 - an indicator that evaluates the effectiveness of the site, and metric No. 15 characterizes the effectiveness of marketing in social networks.