Quelch puts business drivers as the first of the three pillars in the marketing dashboard and prescribes us to measure them on a monthly ongoing basis.
So now we know what business drivers are and how we should monitor them, but how do we pick them and how do we use them? Let's focus on picking them first.
Each time we prepare a proposal we follow the 3C Model to gain a 360 perspective on the organization's customers, competition, and company. From there we define the business drivers before moving into our most critical business problem and initial hypothesis. It's from the 3C Model that we determine the business drivers. We look at what the 2-4 most influential leading financial indicators are for the company that we can affect. This is what guides our marketing initiatives. Once we know the business drivers, marketing initiatives are simply plugged in as tactics to move the needle on those most important metrics.
I'll use a real client example to explain this - we worked with a kitchen faucet manufacturer and found that their two business drivers were average order value and number of customers. In order to move the needle on those we needed to figure out ways to increase average order value and the number of customers. To do this we engaged in conversion design focused on increasing average order value, social media targeting their customer segment with the highest average order value, and SEO designed to attract new customers to their website. Once these initiatives were in place, we could monitor them on a monthly basis and measure the affect they had on the economics of the company.
Monitored and measured business drivers are real numbers that you can show the CEO to prove the value of marketing in your organization's financials.
Source: Measuring Marketing Performance, By Gail McGovern & John A. Quelch
Chris Root, Associate Consultant, eBoost Consulting
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