What Is Marketing Performance?
It’s impossible to work in marketing and not be concerned about marketing performance. What is marketing performance exactly? Marketing performance is the metrics and outcomes that marketing departments look at to determine how well their marketing activities are doing at achieving the goals in their marketing plans.
It’s helpful to start with a marketing performance definition. Marketing performance is the alignment between the marketing team’s stated goals and objects versus actual results. It is measured using a selection of metrics and key performance indicators (KPIs), including return on investment, cost per sale, cost per lead, conversion rate, and customer lifetime value.
But those marketing metrics aren’t the only elements to consider when understanding marketing performance as a concept. In order to be successful and high-functioning, marketing departments need to focus on planning future marketing activities using predictive analytics to determine the best activities to employ. That is usually referred to as marketing performance management, and the planning and strategizing activities are typically undertaken by marketing executives, managers, or the CMO.
Second, marketers need to successfully carry out those marketing activities, which is typically referred to as marketing execution. The daily marketing tasks are typically undertaken by lower-level marketers, marketing generalists, or marketing specialists who focus on a specific type of marketing. Similarly, marketing project managers will focus on the respective tasks and activities needed to execute the initiatives they have prioritized.
The planning and execution of marketing activities need to happen simultaneously and come together under the umbrella label of marketing performance. No matter what role you play on a marketing team, you’ll need to access marketing analytics to determine whether you’re meeting your own KPIs and those of the marketing department.
In addition, marketing performance should be measured at consistent and regular intervals. Marketing performance assessment is typically carried out annually before the creation of the upcoming annual budget and at the end of each campaign to determine their efficiency and effectiveness. This allows those engaged in marketing performance management to ensure that adjustments are made to future marketing plans to capitalize on past performance. It also allows the marketers in charge of executing those plans to identify the tweaks they can make to ensure more successful marketing activities.