The Marketing Trends 2023 Series - 6/6
Hook. Line. Measure.
Like Peter Drucker said and how the internet loves to quote him for it, ‘you can’t improve what you can’t measure.’ You simply can’t. But for a long time now, businesses and understandably, marketers have resorted to different KPIs.
Business KPIs are metrics that a company uses to measure its overall performance and progress toward its goals. These can include financial metrics such as revenue, profit, and RoI, as well as non-financial metrics such as customer satisfaction, employee retention, and market share.
Marketing KPIs, on the other hand, are metrics that a company uses to measure the effectiveness of its marketing efforts. These can include metrics such as website traffic, lead generation, conversion rates, and social media engagement. Marketing KPIs are typically focused on the customer journey and how well a company’s marketing efforts are driving awareness, interest, and action from potential customers.
When all is said and done, business KPIs and marketing KPIs are related, as marketing activities are often a key driver of business performance. However, they are distinct, in that, business KPIs focus on the overall performance of the company, while marketing KPIs focus specifically on the effectiveness of marketing efforts.
But that is changing vis-à-vis the recession
The first thing that could potentially take a hit is the marketing function. Irrespective of B2B or B2C, what does the marketer need to do?
Or, before any action, let’s ponder: are we looking at it wrong?
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We saw it happen once during the pandemic. Once during the Financial Crisis. And as history tells us, during the Great Depression.
When all things turned bleak during the Great Depression, many businesses – from your regular mom-and-pop stores to giants – closed their shutters forever. But, not The Kellogg Company. At a time when everyone else perceived marketing as a money drainer, Kellogg believed and did just the opposite. After doubling their ad spend and executing some phenomenal radio advertising, Kellogg’s – as it is fondly known – increased their profits by 30% (1).
So, maybe, the solution is not in booting marketing after all, but rather evolving it. And it already has. Today, marketing is moving towards reining the overall performance of a company (as it should).
How can marketers and marketing teams gear up for this, so as to not become redundant? The answer, while arbitrary, has a simple formula, and it all ties back to measuring KPIs. Everything boils down to business owners wanting to know what they want, and trusting their process, and most importantly, their marketing teams, if we may.
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