How Marketing contributes to the Fulfillment of Corporate Goals: From Strategy to Implementation
Marketing as a Value Driver: The Importance of strategic Marketing Approaches
If the strategy is neglected, this successively leads to the marketing departments not focusing on the essentials and not being able to perform their task in a target-oriented manner. If there is a lack of concrete goals and processes, marketing cannot act proactively. This circumstance can give the impression that marketing is merely wasting financial resources and not making a real contribution to achieving the company's goals.
The question is therefore: How can marketing create greater relevance within its own company?
Success-oriented Marketing: Strategy, Goals, Measurability
The often lacking strategic relevance of marketing must be addressed at the management level. Together with marketing, the strategy must be laid out. The marketing objectives derived from this should be aligned with the corporate objectives and make a significant contribution to their achievement. Subsequently, concrete, realistic measures should be defined for each marketing objective. For the relevance of marketing, it is essential that at least one measurable key performance indicator (KPI) is defined for each measure in order to evaluate and ensure the success and effectiveness of the measure.
Smart and effective: PDCA cycle for marketing successes
In order to demonstrate marketing successes in the company that are presentable and comprehensible to all, a systematic approach is relevant. A proven method to achieve continuous improvements in marketing is the PDCA cycle. By iteratively applying the PDCA cycle, companies can better plan their marketing activities, implement them effectively, review the results, and make adjustments as needed. This cyclical approach creates a culture of continuous improvement in marketing and makes it possible to systematically increase the success of marketing measures. However, optimized marketing not only contributes to the achievement of individual marketing goals, but also represents a significant factor in the sustainable overall success of the company by increasing sales, strengthening competitiveness, and promoting customer acquisition and retention.
Not all KPIs increase Relevance in the Company
In order to determine which indicators are relevant and which are not, one should always ask oneself what ensures the long-term success of the company. As a rule, these are factors that have a positive impact on customer acquisition, customer loyalty and sales, as they have a direct influence on the sustainable success of the company. Indicators that have no significance for achieving the company's goals, such as the number of newsletter sign-ups or the number of leads generated, have little to no relevance.
Examples of relevant marketing KPIs at company level are:
Marketing Return on Investment (MROI)
ROI in marketing is the relationship between the return achieved and the cost of investment. Calculating ROI is critical to evaluating the effectiveness and value of marketing activities. Depending on the company, certain marketing channels may be more effective than others.
Pipeline Contribution / Sales Attribution
This KPI measures the number of opportunities that are successfully converted into new business. It helps to determine the contribution of marketing to the company's overall revenue and to analyze the success of individual marketing measures and channels.
Cost per Acquisition (CPA)
The CPA measures the cost to acquire a new customer. It is calculated by dividing the total cost of marketing activities by the number of customers acquired. A low CPA indicates efficient customer acquisition.
Customer Lifetime Value (CLV)
The monetary contribution generated by a customer throughout the duration of his interaction with a company is evaluated with this KPI. The CLV helps to analyze the success of cross-selling and upselling campaigns as well as to determine and evaluate the contribution of marketing to overall sales.
Our team will be happy to assist you in defining your strategic marketing goals and developing the corresponding measures and metrics. Our business consultants analyze your current situation using the isolutions CX framework and develop measures for optimization, both on the process level and on the technical level with our implementation team.
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