Marketing Metrics

A fundamental problem for measuring marketing performance is defining and identifying both the best metrics and best practice. This article, based on a three-year research project among major companies, summarises both what firms do and what the research implied they should do. It proposes a common use of language as a prerequisite to defining metrics and introducing performance measurement systems. Boards should establish and regularly review both external and internal market metrics, including innovation health. The author also explains why he thinks market research responsibility, and reporting marketing performance to the board, should be turned over to the finance director or chief knowledge officer.