Real-time maRketing accountability · 2 | Real-time maRketing accountability This analysis—with over 800 marketing leaders—by the Forbes Marketing Accountability Initiative and

Real-time maRketing accountability

How High-Performing Marketers Are Supporting Strategic Growth Decisions With Real-Time Voice of the Customer Data and Insights

Table of ConTenTs

I. Key FInDInGS FRoM THe ReSeARCH ............................................................................. 2

II. THe GRoWInG neeD To DeVeloP FInAnCIAlly CReDIble MeASuReS oF MARKeTInG ConTRIbuTIon To enTeRPRISe VAlue ............................................... 4

III. SIx CHAllenGeS buSIneSS leADeRS FACe unDeRSTAnDInG, MeASuRInG AnD GRoWInG THe VAlue MARKeTInG CReATeS .................................. 6

IV. THe 18 WAyS MARKeTInG STRATeGIeS AnD InVeSTMenTS DRIVe enTeRPRISe VAlue AnD FIRM FInAnCIAl PeRFoRMAnCe ............................. 8

V. HoW HIGH-PeRFoRMInG MARKeTeRS ARe ACHIeVInG beTTeR MARKeTInG InVeSTMenT PeRFoRMAnCe AnD GRoWTH ouTCoMeS ....................24

VI. 12 CHARACTeRISTICS oF HIGHly ACCounTAble MARKeTInG oRGAnIzATIonS ...........................................................................................30

VII. THRee STePS MARKeTeRS ARe TAKInG To beTTeR SuPPoRT MARKeTInG DeCISIon MAKInG WITH ReAl-TIMe VoICe oF THe CuSToMeR DATA AnD InSIGHTS .......................................................................................34

VIII. A FRAMeWoRK FoR buIlDInG A CoMMAnD CenTeR To SuPPoRT MARKeTInG DeCISIon MAKInG WITH ReAl-TIMe VoICe oF THe CuSToMeR DATA AnD InSIGHTS ............................................................ 39

Ix. APPenDIx ......................................................................................................................... 53About the Authors ..........................................................................................................................................53About the Forbes Marketing Accountability Initiative Powered by MASB ............................54Methodology .....................................................................................................................................................55Interviews ...........................................................................................................................................................55Citations ..............................................................................................................................................................56

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2 | Real-time maRketing accountability

This analysis—with over 800 marketing leaders—by the Forbes Marketing Accountability Initiative and the Marketing Accountability Standards Board (MASB) confirms that marketing investments and actions have emerged as a primary driver of firm value in a digitally driven economy, where the majority of firm value is determined by intangible assets such as brand perception, customer insights, digital experiences, and perceptions of quality and innovation.

KeY fInDInGs fRoM THe ReseaRCH

I

The analysis identified 18 ways that marketing investments, assets and strategies create enter-prise value. As a direct consequence, marketing accountability—defined as the measurement and

optimization of the contribution of marketing invest-ments to enterprise value—is now a critical issue for investors, owners, CEOs and CFOs of Global 5000 orga-nizations because it significantly limits their ability to create shareholder value and organic growth.

This report outlines how high-performing marketers are achieving 5% better returns on marketing invest-ments and over 7% higher levels of growth performance by building higher levels of marketing accountabil-ity and data-driven marketing approaches. The research found that CMOs who report the highest levels of per-formance (exceeding growth plans by over 25%) are achieving better business outcomes from their mar-keting investments because they have found ways to support more strategic growth, investment and resource allocation decisions that impact stock price—with data and real-time customer insights.

copyRight © 2018 FoRbes maRketing accountability initiative | 3

KEY FINDINGSSpecifically, the research shows that the most effective marketers (who exceeded growth plans by 25%) are focusing their growing investments in data, analytics and marketing technology on building more accurate, predictive and real-time insights by:

●● Dedicating more staff and resources to the development of the data, analytics, external benchmarks and models needed to support world-class marketing performance measurement as a personal and professional imperative.

●● prioritizing digital, social media and mobile marketing investments as their highest-performing investments—at every stage of the customer journey: awareness, engagement, demand generation and sales.

●● becoming faster and more effective at shifting marketing resources and investments across media, channels and stages of the customer journey to optimize performance and adapt to the market.

●● putting in place measurement and analytics systems and processes that make them twice as fast at apply marketing performance and voice of the customer insights to optimize performance and adapt to the market. Forty percent of high-performing marketers are applying customer data to marketing optimization and resource allocation decisions on a daily basis, three times the level of the average marketing organization.

●● making it a top priority to reduce the time and complexity involved in aggregating, unifying (integrating) and interpreting data from many different digital customer touch points, channels and silos into real-time executive insights—at scale, across the enterprise.

●● clearly communicating key customer trends to senior leadership by processing, interpreting, contextualizing and visualizing millions of conversations with connected customers across touch points in real time.

●● Sharing information across the enterprise that informs and supports teams from across geographies, business units and market segments, as well as c-level allocation and investment bets that will determine growth, competitiveness and share price going forward.

●● Defining the measures and data most critical to helping ceos and cmos to understand the key customer-driven factors that impact enterprise value in real time, so they can support the major trade-off, reallocation and risk investment decisions required to remain competitive in a dynamic and rapidly changing marketplace with voice of the customer data.

●● Developing 12 common organizational capabilities that allow them to better leverage the data, systems and marketing services partner relationships they have to evolve their marketing performance measurement systems to a best-in-class model.

these findings, and examples of steps your organization can take to better support strategic growth and resource allocation decisions with real-time voice of the customer data and insights, are outlined in the report.


Understanding, measuring and growing the contribution of marketing to enterprise value has emerged as a critical issue in a rapidly changing marketplace where intangible value makes up over 80% of shareholder value—and brand equity, customer relationships, organic growth rates and innovation increasingly drive stock price.2

THe GRoWInG neeD To DeVeloP fInanCIallY CReDIble MeasURes of MaRKeTInG ConTRIbUTIon To enTeRPRIse ValUe

II


investors and owners need to understand how marketing investment, assets and strategies impact company valuation.

The contribution of marketing to enterprise value in an intangible and digitally driven economy is large and growing when brand, customer and digital assets are properly valued and the impacts of marketing performance, collaboration and percep-tions of innovation on financial outcomes are measured. Evidence from financial markets as well as academic and commercial research referenced in this study show that marketing strategies, investments and actions can contribute over 50% of enterprise value in many organizations. For example, according to brand valuation standards validated by the Marketing Accountability Standards Board, brand value alone contributes 19% of enterprise value on average. For consumer brands like Kraft Heinz and Molson Coors, that number can easily exceed 50% of shareholder value.7

2 executive leadership needs facts to support the critical growth and trade-off decisions that impact share price.

Without common marketing measurement standards and data-driven insights into how marketing investments contribute to enterprise value, boards, CEOs, CFOs and CMOs will struggle to make the critical trade-off, reallocation and risk investment decisions required to remain competitive in a dynamic and rapidly changing marketplace. The majority of CMOs interviewed report they are still making these critical decisions based on historical investment, or even “gut feel,” instead of the voice of the customer and data-driven facts. “Right now, the huge investments organizations are making in marketing analytics are better at helping support marketing tactics than strategic marketing decisions,” according to Elissa Fink, CMO of Tableau. “The A/B testing our marketing analytics teams use to track performance is good for marketing tactics, campaigns and little decisions. The problem is there is no A/B test for the big strategy and trade-off decisions the CMO needs to make, where you are either in or out.”

3 brands must understand and delight digital customers if they expect to drive future growth.

The digital customer increasingly defines every market, and the majority of new growth will come from digital channels. As a consequence, 89% of organizations are prioritizing the customer experience as the focal point of the branding, design, deliv-ery and differentiation of their products and services.3

CMOs are struggling to keep up with an ever-changing customer journey and an increasingly complex marketing investment mix and technology ecosystem. Marketers are being asked to prove the value of their rising ($1 trillion) investments in a rapidly changing mar-ketplace where the economy is growing and customers are moving to digital channels. Marketing investment has grown to $1 trillion globally, representing 7.9% of total sales on average.1 According to Forbes research, 92% of CMOs are investing in a complex mix of 20 marketing, media, channel and technology investments to support growth in their businesses.5

As a consequence, marketing accountability—defined as the measurement and optimization of the contribu-tion of marketing investments to enterprise value—has emerged as a critical issue for senior leadership of Global 5000 organizations because it significantly limits their abil-ity to create shareholder value and organic growth. CMOs

consider the development of an internal framework that measures how marketing activities contribute to enterprise value to be the top way they plan to address the challenge of measuring return on investment (ROI) of marketing,

and over half (59%) of CFOs attach a high priority to measuring marketing ROI in the next three years.4

To better understand the problem, the Forbes Marketing Accountability Initiative and the Marketing Accountability Standards Board (MASB) surveyed over 800 marketing executives, under the direction of an advi-sory council of 50 CMOs. The research found a universal consensus among practitioners, academics, industry regu-lators and financial analysts interviewed about the need for better marketing accountability and more data-driven measures of marketing performance. There are several fundamental reasons that Global 5000 organizations need to better understand, measure and improve the way mar-keting investments contribute to enterprise value:

to address this issue, the Forbes cmo Practice has initiated an ongoing series of research studies to develop best practices research, benchmarks and standards to change this dynamic to better connect marketing investment with business outcomes.


This challenge has spawned a significant rise in investments in analytics in hopes of provid-ing business leaders with the facts they need to measure, optimize and grow the value marketing

creates. Investments in analytics now represent over 5% of overall budgets and are universally expected to grow at double digits in the next several years, according to the 2018 Duke CMO Survey.1

But despite years of vetting and advances in big data, analytics and technology that offer the potential to increase transparency, attribution and accountability for business results, they have so far failed to deliver on that promise. Forbes research—with more than 800 CMOs and 50 academics and subject matter experts—reveals that most CMOs still struggle to quantify the value marketing creates and communicate it to their leadership, peers and partners. For example, a recent survey by Forbes found that 89% of the marketers interviewed reported being unable to quantify the return they are getting on their investments in data and analytics.6

In order to fully capitalize on advances in data, voice of the customer analytics and marketing mix model-ing, progressive marketers are evolving their measures of performance to better inform the critical decisions the CMO must make to stay ahead of customer preferences, accelerate growth and avoid disruption or commoditiza-tion in a rapidly changing marketplace. As a consequence, most of the marketers interviewed in this study report that the complexity of measuring marketing performance and the lack of externally validated standards for market-ing accountability are severely impeding their ability to affect their growth agenda, make informed decisions and take appropriate risks.

This is because measuring marketing performance represents a unique measurement challenge compared with measuring other business processes such as supply chain, product quality, cash flow, physical assets and oper-ational costs. According to Michael Griffiths, VP of global marketing and communications for retail and ecom-merce at Pitney Bowes: “Marketing is the most important function when it comes to driving growth—but least measurable part of the business when compared with product, the IT road map and sales.”

Measuring the return on marketing investment has long been an inex-act science. Indeed, the CEOs and CFOs who approve marketing in-vestment budgets and capital out-lays often liken the quantification of marketing performance to stapling Jell-O to a tree.

sIX CHallenGes bUsIness leaDeRs faCe UnDeRsTanDInG, MeasURInG anD GRoWInG THe ValUe MaRKeTInG CReaTes

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Collecting customer data from an exploding variety of digital, owned, earned and paid mar-keting touch points required to engage customers and support the entire customer journey—from building brand awareness to growing sales conversion rates and margins. “Marketers are dealing with an exploding possibil-ity curve in terms of channels, investments, choices and change—it’s difficult to set priorities when there are so many smart things to pursue,” according to David Edelman, CMO of Aetna. To address this issue, over a third (36%) of the highest-performing marketers are developing data maps to identify silos of channel, media and market seg-ment data as a top priority in the next 12 months.

2 The rapid shift of customer engagement to digital, social and mobile channels at every stage of the customer journey. Understanding where to reallocate investment resources as well as how aggressively to shift to emerging digital investments and platforms have emerged as top short-term CMO priorities.4 For example, Shawn Sullivan, CMO of the Boston Celtics, needs to worry about how quickly fans are moving away from are-nas, radio and television to new digital sports platforms. “My short-term challenge is how aggressively to invest in new digital platforms and formats like AR/VR and sports. It’s expensive today and difficult to prove it out financially, but there is big upside, and we don’t want to miss the trend. Should we let other teams be guinea pigs? Or experiment and be a leader?”

3 Pressure to adapt to changing customer behaviors, preferences and market disruptions in real time. According to Carter Burgess, who leads the Board of Directors Practice at RSR Partners, boards are going to have to pay greater attention to customer experiences in order to protect and build shareholder value in an economy that is increasingly digitally driven and where the majority of corporate assets are intangible. “The con-versation about growth, risk and investment is going to increasingly revolve around issues like adapting to rapidly changing customer behavior, digital transformation, enhancing the customer experience, brand asset impairment and the corporate inno-vation agenda. Leaders with marketing experience—in consumer products, brand management, e-commerce and marketing analytics—are going to have a bigger voice in these conversations.”

4 The difficulty creating a more integrated view of the customer experience across a growing portfo-lio of marketing technology platforms and systems that collect first- and third-party data. Gartner says marketing technology—including databases, marketing automation platforms, web analytics, CRM, social listening and ad tech systems that house customer data—makes up a 27% share of total marketing budget in 2018.34 As a direct result, 49% of high-performing marketers are integrating critical platforms to support data-driven measurement as the top action they will take in the next 12 months to improve marketing performance.

5 lack of teamwork across the many team, channel, systems and process silos within the marketing organization that must be bridged to gain a 360-degree view of the customer. “Today growth requires teamwork,” according to Thomas White, CMO, TIAA Institutional Financial Services. “There are multiple drivers of growth in a hybrid sales and marketing system—live sales, customer service, digital marketing and retail. And delivering a superior customer experience is a team sport. Not all of these capabilities are under my control as a CMO. So, marketing cannot do it alone. We need to partner with distribution, the CFO, product, compliance and IT. An effective partnership requires a lot of education about what is required to accelerate growth and why it’s necessary to work together towards collective outcomes.”

6 The lack of common, externally validated standards for measuring marketing performance. Most of the marketers interviewed in this study report that the complexity of measuring marketing performance and the lack of externally validated standards for marketing performance are severely impeding their ability to affect their growth agenda, make informed decisions and take appropriate risks.

The challenges of understanding, measuring and growing the contribution marketing investments make to firm performance include:

As a consequence, three-quarters of the Global 5000 CMOs surveyed in this analysis reported that their inabil-ity to communicate, quantify and optimize the value of marketing hurt them both professionally and personally.4

To address this issue, the Forbes CMO Practice has initiated an ongoing series of research studies to develop best practices research, benchmarks and standards to change this dynamic to better connect marketing invest-ment to business outcomes. The findings of our initial research are outlined below in context.


The contribution of marketing to enterprise value in an intangible and digitally driven economy is large and growing when brand, customer and digital assets are properly valued and the impacts of marketing performance, collaboration and perceptions of innovation on financial outcomes are measured. Evidence from financial markets as well as academic and commercial research referenced in this study show that marketing strategies, investments and actions can contribute over 50% of enterprise value in many organizations.

THe 18 WaYs MaRKeTInG sTRaTeGIes anD InVesTMenTs DRIVe enTeRPRIse ValUe anD fIRM fInanCIal PeRfoRManCe

IV


For example:●● According to research by the Marketing Accountability

Standards Board (MASB), emerging global and finan-cial standards for valuing the economic contribution of brand demonstrate that brand equity contributes on aver-age 19% of enterprise value in consumer businesses, and 10% of value in business-to-business organizations—in many cases higher. For consumer brands like Kraft Heinz and Molson Coors, that number can easily exceed 50% of shareholder value.28

●● Customer equity drives share price. According to academic research, the value elasticity of customer equity is 0.72.29 This means a 10% increase in the value of cus-tomer assets will drive a 7.2% increase in stock price because higher levels of customer satisfaction, trust and online service innovations enhance long-term margins, sales growth and enterprise value. This is because the life-time value is being redefined as an economic model in a digitally driven economy. This is evidenced by digital innovators like Waze ($1.3B), LinkedIn ($26.2B), Tumblr ($1B) and Airbnb ($30B), which have turned digitally enabled customer networks into valuable assets. According to David Rogers, author of The Digital Transformation Playbook, these customer networks create enterprise value by shifting from a “broadcast” distribution model to a net-worked model for engaging customers that addresses their unmet need and desire for greater access, engagement, customization, collaboration and connections.8

●● Marketing effectiveness, organizational information sharing, customer experience, and the quality of products, people and innovations have all been empirically proven to drive increases in firm value by academics.30

Sources: 1) brand value as a percentage of marketing capitalization. applying the brand investment and valuation model. analysis of meier, Findley, Stewart. marketing accountability Standards board, 2017. 2) marketing’s impact on Firm value: generalizations from a meta analysis, ama, alexander edeling and marc Fischer, Journal of marketing Research 2016. 3) empirical generalizations about marketing impact, hanssens, marketing Science institute. 4) the marketing accountability Standards board ciR initiative, 2018.

The Financial Contribution of Marketing to the enterprise

Quality of People and Products

brand Value

Customer equity

Marketing effectiveness

Digital Platforms

organizational Competence

The value elasticity of brand equity is 0.33—meaning a 10% increase in the value of the brand will drive a 3.3% increase in stock price2

The value elasticity of customer equity is 0.72—meaning a 10% increase in the value of customer assets will drive a 7.2% increase in stock price2

The value elasticity of organizational competence is 0.55—meaning a 10% increase in organizational competence will drive a 5.5% increase in stock price2

Research from MASB shows that enterprise initiatives aimed at improving the Return on Marketing Investment (ROMI) are generating improvements of up to 9%2,4

The elasticity of digital channel effectiveness is 0.22—meaning a 10% increase in the effectiveness of digital channels will drive a 2.2% increase in stock price3

The elasticity of product quality, breadth and innovation is 0.3—meaning a 10% increase in perceptions of product quality will drive a 3% increase in stock price2,3


The Financial Contribution of Marketing to the enterprise



brand Value

Customer equity


Digital Platforms

18 Strategic Value Drivers of enterprise Value

brand Assets

Customer Satisfaction

organizational Knowledge

SharingMarketing

effectiveness owned

Digital Media Performance

employee Talent, leadership and

engagement

brand Preference

Customer loyalty

Inter-Departmental

Connectedness Sales and Service

effectivenessDigital

Channel Performance

Perceptions of Innovation

brand Momentum

Customer Relationships

organizational Measurement Capabilities

Channel Reach, Share and

PerformanceDigital

experienceProduct

and Service Quality

This research reveals that intelligently managed and measured marketing strategies, investments and actions have the potential to make a large and quantifiable con-tribution to shareholder value in terms of brand value, customer equity, organizational competence, marketing effectiveness, digital growth platforms and innovation. Our team found that academic and commercial research, industry standards and emerging measurement methodol-ogies are creating a clear connection between marketing investment and activity and enterprise value. This analysis yielded a marketing accountability framework that makes it much easier for individual organizations to measure and quantify the ways marketing can create value. Some of the primary ways marketing strategies and investment drive enterprise value include:

●● ●Intangible assets such as brand value and customer equity influence customer behavior in ways that create financial benefits and represent a significant portion of enterprise value.

●● ●Technology—in the form of digital platforms and product, service and channel innovations—creates new growth potential for legacy organizations and plays a much larger role in the value of a company.

●● ●Organizational competencies in information sharing, collaboration and marketing effectiveness are directly correlated to growth and increased company value.

To capture the full range of growth options, the research isolated 18 discrete strategic value drivers with the potential to maximize growth, profitability and share-holder value. These represent the major strategic trade-off and investment decisions leaders must make as they strive to accelerate growth in a digitally driven market.


The 18 ways marketing strategies and

investments drive enterprise value and firm financial

performance are outlined in the following

pages.


brand Value

84% of the value of the

S&P 500 is made up of intangible assets—such

as brand, patents, proprietary processes

and goodwill.

“Thirty percent of your shareholder value is your brand,” says Karen Walker, Cisco’s SVP and CMO. “If you didn’t believe that, look at United Airlines.” Academic research confirms this assertion by demonstrat-ing that brand has a direct and causal impact on share price. An analysis of many academic studies across brand categories quantifies the “value elasticity” of brand equity is 0.33—meaning a 10% increase in the value of the brand will drive a 3.3% increase in stock price.2 Brand value contributes to enterprise value in several specific ways:

bRAnD ASSeTSBrands are intangible assets that lack physical substance (like patents, copyrights, franchises, goodwill, trademarks and trade names), according to FASB Accounting Standard Code 350/ASC350. But in a world where most shareholder value is attributable to intangibles, they can be extremely valuable. “The ‘brand’ is one of the largest assets that a company owns,” according to Tony Pace, the CEO of the Marketing Accountability Standards Board: “Empirical analysis by the Marketing Accountability Standards Board using the latest global standards shows the brand by itself is worth nearly 20% of corporate value of a consumer marketing business, and about half that in a B2B organization. Yet most businesses don’t measure it or report it and tend to collapse it with the idea of ‘brand’—the ability to put a stamp on a common good that is only differentiable due to its logo.” These assets can make up as much as half the value of a powerful consumer brand like Unilever or Kraft Heinz. According to Forbes, the top 100 brands in the world are worth almost $2 trillion. Under new FASB guidelines on intangibles reporting, prominent companies such as Kraft Heinz and MillerCoors have both disclosed that their collections of brand assets are substantially more valuable than goodwill in M&A transactions. Over 70% of MillerCoors’ corporate value was made up of brands in the transaction (as long-term indefinite assets). And over 50% of Kraft Heinz’s market capitalization is made up of its brand portfolio as a result of its merger versus 18% for goodwill.

2 bRAnD PReFeRenCeA significant part of a company’s value can be derived from brand preference because it changes customer behavior in ways that create future cash flow and profits in terms of price premiums, share of wallet, retention and conversion rates. For example, an analysis of 220 consumer products by the Marketing Science Institute (MSI) found that a superior brand preference or reputation commanded price premiums of 26% on average, even when brand quality is the same—due to the brand-building impact of advertising and other marketing investments. Academic research shows that in similar goods categories, brand preference for the top brands in a given category correlates to category profit-ability. And brand tracking studies conducted by MASB and the MSI across over 100 brands have demonstrated that brand preference is highly correlated to predicting cash flow and market share. This finding is validated in the mar-ketplace by the fact that the dominant phone brands—Apple and Samsung—capture the lion’s share of profits in the mobile handset category. “Over the last


40 years an array of brand-tracking studies by academics and independent research houses have proven again and again that brand preference is a primary driver of customer choice, business outcomes and cash flow,” according to Frank Findley, di-rector of the Marketing Accountability Standards Board. “That value has been traditionally reflected in the capital mar-kets as a premium that brand-based businesses are paid on ac-quisition and in transfer pricing. The challenge today is, the brand asset is not reported financially, valued or managed as a business asset in most organizations.”

3 bRAnD MoMenTuM Commercial research and stock market performance have demonstrated that brand momentum and rapid organic revenue growth have been shown to drive shareholder value. Brand image was identified as a high-level strategic marketing driver that influences customer decision making and is empirically proven to have a direct financial impact on enterprise value by improving brand equity, customer equity and growth, according to the analysis “Return on Marketing: Using Customer Equity to Focus Marketing Strategy.”37 The capital markets increasingly value organ-ic growth over profitability. For example, publicly traded companies like HubSpot and Salesforce.com didn’t turn a profit until recently, but their stock price rose as long as they kept growing by over 25% a year. The price/earnings ratio (P/E ratio) of high-growth publicly traded businesses like Salesforce.com and Amazon were historically nega-tive until each recently turned a small profit. For example, HubSpot had a P/E ratio of 57 (versus a historical average of 15 for the S&P 500), based on stock market perfor-mance in 2016. “Consultants have identified a causal relation-ship between organic growth and enterprise value,” according to Susan Avarde, board member at Brand Foundry Ventures, “because revenue growth is the primary means by which companies improve profitability and increase enterprise value.”

Brand image was identified as a high-level

strategic marketing driver that influences customer

decision making.


Customer equity

89%of marketers are

making the customer experience the focal

point of the branding, design, delivery and

differentiation of their products and

services.3

The academic research profiled in this report has identified a causal relationship between investments in customer satisfaction, loyalty and relationship strength and enterprise value at legacy businesses. According to academic research, the value elasticity of customer equity

is 0.72.29 This means a 10% increase in the value of customer assets will drive a 7.2% increase in stock price, because higher levels of customer satisfaction, trust and online service innovations enhance long-term margins, sales growth and enterprise value. Customer equity contributes to enterprise value in several spe-cific ways:

4 CuSToMeR SATISFACTIon leVelSAcademic research has identified a causal relationship between investments in customer satisfaction and enterprise value. Customer recognition, trust, preferential treatment and loyalty programs were all identified as high-level strategic marketing drivers that influence customer decision making and are empirically proven to have a direct financial impact on enterprise value by improving brand equity, customer equity and growth, according to an analysis in the paper “Return on Marketing: Using Customer Equity to Focus Marketing Strategy.”37 A comprehensive analysis of academic research by the Marketing Science Institute (MSI) reinforces this with research that shows improvements in customer satisfaction boosted firm performance by enhancing sales growth, margins and enterprise value. According to academic research in the book Empirical Realizations about Marketing Impact, achieving high levels of customer satisfaction has significant financial payoffs in terms of accounting-based measures of financial performance and financial market-based measures of shareholder value.30

5 CuSToMeR loyAlTyLoyal, enthusiastic customers who love doing business with your organization are worth far more to your company than passive customers or detractors, par-ticularly as product delivery evolves to subscription-based “as a service” models, with growing adoption for software, platforms, music and books. It is possible to quantify the value of loyalty in terms of higher retention rates, increased share of wallet, reduced price sensitivity, lower cost to serve and increased word of mouth referrals. Bain & Company research has popularly established a strong link between organic growth and a company’s Net Promoter Score—which measures willingness to refer—relative to the relevant competitors in its indus-try. In most industries, Net Promoter Scores explain roughly 20% to 60% of the variation in organic growth rates among competitors. On average, an indus-try’s Net Promoter leader outgrew its competitors by a factor greater than two times. And loyalty can be a persistent growth asset. For example, a time series analysis of 92 brands from 21 frequently purchased consumer goods categories by the Marketing Science Institute (MSI) shows that loyalty to a brand is dura-ble over a one- to two-year time frame.


6 CuSToMeR RelATIonSHIPS Academic research has provided tools to quantify the value of strong customer relationships and understand how they directly link to and drive enterprise value. According to Edgar Baum of Strata Insights, “In this new world where most of share price consists of intangible value, brand-affiliated intangible marketing assets such as disclosed and undisclosed customer relationships and lists have a significant impact on enterprise value.” A seminal analysis of return on market-ing found that strong customer relationships influence customer decision making and are empirically proven to have a direct financial impact on enterprise value by improving brand equity, customer equity and growth.37 According to one of the authors, Kay Lemon, “Marketing theory and practice have become increasingly customer-centered over the past 40 years. This has led to a decreased emphasis on short-term transactions and an increased focus on long-term cus-tomer relationships, and a shift from product-centered thinking to customer-centered thinking. This creates the need to shift from product-based to customer-based strategies.” The study dem-onstrated how customer lifetime value (CLV) should be used as a practical and widely applicable measure of mar-keting performance and a reasonable proxy for enterprise

value. For example, an analysis of American Airlines’ aver-age customer lifetime value of $167 across their passengers adds up to $7.3B, which aligns with a market capitaliza-tion of $9.7B. Using customer lifetime value can help executives make trade-off decisions across competing stra-tegic growth initiatives. In the case of American Airlines, this CLV metric makes it possible to compare expanding leg room in the passenger compartment with improving loyalty programs or on-time performance on an apples-to-apples basis.

Academic research has identified a causal relationship between

investments in customer satisfaction and enterprise value.



The CMos on the executive Advisory

Council overwhelmingly emphasized the importance of

collaboration and

teamwork across business units as fundamental to creating

enterprise value.

cademic and commercial research has made it overwhelmingly clear that growth is a “team sport” and that there is a causal relationship between organizational competence in analytics, marketing, information shar-ing, agility and cross-functional collaboration with enterprise value.

This research shows that a 10% increase in organizational competence will drive on average a 5.5% increase in stock price.29 The Forbes CMO survey found that organizations investing in data-driven measurement processes, com-petencies and systems were achieving significantly higher levels of marketing effectiveness and business outcomes.4 Organizational competence contributes to enterprise value in several specific ways:

7 oRGAnIzATIonAl KnoWleDGe SHARInGAcademic research has identified organizational knowledge sharing as a key enabler of marketing accountability and a driver of enterprise value. A com-prehensive analysis of 114 academic research studies by the Marketing Science Institute (MSI) found that the generation of, dissemination of and responsive-ness to marketing intelligence across the company is highly correlated with increases in enterprise value—as measured by profits, sales and market share. The “meta-analysis” of academic research also found that increased market focus and orientation—in the form of customer analytics—enhanced firm per-formance. The studies found that the ability of an organization to generate, disseminate and respond to market intelligence has a positive effect on organi-zational performance in terms of profits, sales and market share. Even though the implementation of such a system commands resources and takes time, the investments generate profits over and above their cost and simultaneously drive revenue.30 The CMO survey reinforces the importance of organizational knowledge sharing as a driver of superior marketing performance. For exam-ple, the highest-performing marketers in the sample are much faster and more effective at using information to shift marketing resources and investments across media, channels and stages of the customer journey to optimize perfor-mance and adapt to the market.

8 InTeRDePARTMenTAl ConneCTeDneSSThe interviews with CMOs universally emphasized the importance of collab-oration, partnerships and teamwork across business lines and the key functions of product, IT, sales and finance as fundamental to creating enterprise value. Over half (54%) of CFOs surveyed by EY report greater collaboration with the CMO in the last three years to create financially meaningful marketing—driven by changes in marketing strategy, the deployment of direct-to-customer (DTC) channels, new (SaaS) offerings, commoditization and transparency issues.26 “Today growth requires teamwork,” according to Thomas White, CMO, TIAA Institutional Financial Services. “There are multiple drivers of growth in a hybrid sales and marketing system—live sales, customer service, digital marketing and retail. And delivering a superior customer experience is a team sport. Not all of these capabilities are under my control as a CMO. So, marketing cannot do it alone. We need


to partner with distribution, the CFO, product, compliance and IT. An effective partnership requires a lot of education about what is required to accelerate growth and why it’s necessary to work together towards collective outcomes.” A comprehensive anal-ysis of 114 academic research studies by the Marketing Science Institute found that increased interdepartmen-tal connectedness—defined as the degree of formal and informal contact among employees across departments—enhanced firm performance.30

9 oRGAnIzATIonAl MeASuReMenT CAPAbIlITy

Academic and commercial research has identified orga-nizational competence and capability in the development of valid, reliable and accurate measures of marketing per-formance and planning tools based on future forecasted performance as a core competency for high-performing marketing organizations. The Forbes research reinforces those findings by demonstrating that marketers who pur-sue higher levels of marketing accountability are achieving 5% greater returns on marketing investments and 7.5%

better growth outcomes from those investments. The analysis revealed that these high-performing marketers—who were exceeding growth goals by over 25%—were significantly more data-driven in their approach to mea-suring, optimizing and reallocating their offline and online marketing investments. Specifically, leaders were dedicat-ing more staff and resources to the development of the data, analytics, external benchmarks and models needed to support world-class marketing performance measure-ment and were far more focused on modeling the entire marketing investment portfolio at a more granular level, including digital marketing, social media and the efficacy of the specific campaign tactics deployed using them, than average marketers. Almost half of high-performing mar-keters are making integrating marketing reporting with finance and business unit heads a top priority in the next 12 months to improve marketing performance.

Almost half of high-performing marketers

are making integrating marketing reporting with finance

and business unit heads a top priority in the next

12 months to improve marketing performance.



81% of CMos report they are responsible for

supporting sales and delivering sales

outcomes as part of their job

description.4

cademic, commercial and stock market research demonstrates that supe-rior marketing effectiveness creates enterprise value. Academic research studies by the Marketing Science Institute (MSI) found a linear rela-tionship between marketing capability and firm performance. And

the CMOs in this survey ranked reducing customer acquisition costs as the top way marketing can contribute to shareholder value.30 Marketing effectiveness contributes to enterprise value in several specific ways:

10 MARKeTInG eFFeCTIVeneSSThere is tremendous leverage in making marketing dollars work harder since the average organization spends 8.9% of revenue on marketing investment, according to the most current CMO Survey from the Duke Fuqua School of Business.1 Research from the Marketing Accountability Standards Board shows that enterprise initiatives aimed at improving the return on marketing invest-ment (ROMI) are generating earnings per share price improvements of up to 9%.2,4 Tableau CMO Elissa Fink views improving upon that number as an opportunity to create value: “Marketing needs to define its value. The research in this study suggests that as table stakes, marketing should theoretically be influencing over $10 of sales for every dollar of spending and at least 25% of enterprise value. Probably more, depending on what you are counting and taking credit for. What’s important is that the entire team agree on the nature and size of the value marketing can deliver, and work together to achieve that.”

11 SAleS AnD SeRVICe eFFeCTIVeneSSSuperior cost-to-sell performance is a valuable capability. Historically, go-to-market innovators like Dell, GEICO and Schwab built multi-billion-dollar enterprises based on their ability to sell more cost-effectively than their com-petition. For example, Dell pioneered a tele-web sales model that was able to generate twice the revenue per sales and service dollar invested—and a lower cost of acquisition—than traditional computer hardware competitors like IBM. The CMOs in this survey rated reducing the cost of acquisition as the number one driver of enterprise value. And capital markets increasingly value the abil-ity to generate organic growth though sales channels, as evidenced by the stock valuations of high-growth businesses like Salesforce.com and HubSpot—which made little or no profit at all until recently—and stock market research by the Boston Consulting Group that correlates high levels of organic growth with share price premiums. This growth premium, combined with the expanding variety of investment options in the growth formula—such as predictive sell-ing, sales enablement and account-based selling models—has put a premium on sales working closely with marketing to try to find the right mix of invest-ments to balance short-term growth imperatives with long-term value creation. As a direct result, 81% of CMOs report they are responsible for supporting sales and delivering sales outcomes as part of their job description.4 Mike Marcellin, CMO of Juniper Networks, reinforces this connection: “We have to work together to find the areas where one plus one adds up to three. There are so many inefficiencies


where marketing, sales and service can be working more in align-ment to drive greater and more attributable revenues at lower costs. This is the real reason that we need better measures and vocabulary for discussing growth performance, so we can focus on what works and identify places where the collective outcomes of collaboration achieve greater value for the enterprise in terms of sales and financial outcomes.”

12 CHAnnel ReACH, SHARe AnD PeRFoRMAnCe

According to Strata Insights’ Edgar Baum, intangible assets like market access and channel investment have a significant impact on enterprise value in a digitally driven marketplace where customer behavior changes quickly. Academic research and commercial research have dem-onstrated the value of greater shelf space in retail channels and greater mindshare in partner channels.

Academic research and commercial research have demonstrated the

value of greater shelf space in retail channels and greater mindshare in

partner channels.


Digital Growth Platforms

nearly

70%of u.S. online

consumers use a smartphone to go

online in retail stores.

The capital markets are increasingly rewarding digital growth invest-ments from legacy businesses like Walmart and Home Depot, as the majority of new growth in most industries will come from digital plat-forms and “direct to customer” channels. And disruptive digital business

models are creating and reallocating billions of dollars of value across indus-tries as diverse as razor blades (Dollar Shave Club), eyeglasses (Warby Parker), recycling, investment banking, mattresses (Casper) and mortgages (Rocket Mortgage). IDC predicts most Global 2000 organizations will see the majority of their business depend on their ability to create digitally enhanced products, services and experiences by the end of the decade.10 Digital growth platforms contribute to enterprise value in several specific ways:

13 oWneD DIGITAl MARKeTInG PeRFoRMAnCeA comprehensive analysis of academic research by the Marketing Science Institute (MSI) found that “multi-channel” customers—who shop across many different online and offline channels—provide firms a greater ability to mon-etize their assets.30 As a practical matter, CMOs are shifting dollars to build owned and earned digital channels—websites, blogs, influencer networks, email and e-commerce platforms—to gain greater reach and traffic with limited mar-keting resources and at the same time strategically lower the cost of sales. From a strategic standpoint, investing in an omni-channel experience is a survival issue for many organizations in a market where nearly 70% of U.S. online con-sumers use a smartphone to go online in retail stores, almost two-thirds use one in a restaurant or a coffee shop, and 43% use their phones while riding public transportation.31 Sixty-one percent of global business and IT leaders are adding


new customer-facing digital channels as part of their dig-ital transformation journey to reach new customers in new ways.30 Mark McKenna, CMO of the Putnam Funds, amplifies this sentiment with Darwinian overtones: “The marketing world is going to break down to the haves and the have-nots. The haves will have good data, owned channels and marketing talent. The have-nots will have bad websites, data and content. The haves will start to significantly outperform the have-nots.”

14 DIGITAl CHAnnel PeRFoRMAnCeMarket results and academic research are proving that building robust digital channels drives shareholder value. On average, 12.8% of sales are made through the inter-net in 2018.1 And the majority of new growth in most industries—such as retail, consumer packaged goods, high technology—will come from digital platforms and DTC channels.27 The capital markets increasingly reward digital growth investments. For example, shares of Walmart rose for 11 consecutive sessions since the company increased its online presence by spending $3 billion acquiring online shopping site Jet.com. Many analysts see further upside for the stock, as the retailer has made significant efforts to compete with Amazon in the e-commerce space. General Electric and Home Depot are spending $1 billion a year in a quest to build their digital businesses. And Unilever purchased Dollar Shave Club for $1 billion to establish a direct-to-consumer product line. Academic research also confirms the positive impact digital channels can have on share price. An analysis of academic studies across many categories by Edeling and Fisher found the value elasticity of digital channel effectiveness is 0.22—meaning a 10% increase in the effectiveness of digital channels will drive a 2.2% increase in stock price.29 An analysis by Tilburg University and Catholic University of Leuven found that the addition of an internet channel to a firm’s channel portfolio has a favorable impact on stock market valuation when it expands market reach with little channel conflict.30

15 THe DIGITAl exPeRIenCe Academic and commercial research confirms that orga-nizations can create enterprise value by building digital networks and services that better leverage, delight and add value to customers. Advances in technology and mar-keting science have armed marketers with an expanded palette of powerful digital, analytics and mobile tools to help them differentiate and enhance the customer expe-rience and create new enterprise value. The majority (89%) of marketers are making the customer experience the focal point of the branding, design, delivery and dif-ferentiation of their products and services to the digitally empowered customer.3 For example, digital innovators like Waze ($1.3B), LinkedIn ($26.2B), Tumblr ($1B) and Airbnb ($30B) have moved beyond eliminating cus-tomer friction to redefine the customer experience as an economic model in an intangible and digitally driven economy by using digital platforms to develop customer networks that are valuable enterprise assets. These findings are confirmed by academic research. A comprehensive analysis of 1,049 service innovations over five years by the Marketing Science Institute (MSI) found that e-service innovations—defined as the number of internet-based service innovations introduced by a firm—has a positive effect on firm performance because objective customer reviews help build online trust and develop electronic word of mouth.30

The majority (89%) of marketers are making the customer experience the

focal point of the branding, design, delivery and

differentiation of their products and services to the digitally

empowered customer.3



cademic research aggregated by the Marketing Science Institute (MSI) has demonstrated that customer perceptions of employee engage-ment, product and service quality, and firm innovativeness have a direct positive effect on financial position and firm value.30 The

quality of people, products and innovation contributes to enterprise value in several specific ways:

16 eMPloyee TAlenT, leADeRSHIP AnD CulTuReEconomic and stock market analysis reveals that an organization’s culture, tal-ent and leadership can have a positive impact on brand and enterprise value. According to Norm Smallwood—author of the book Agile Talent—a “leader-ship brand” is a company that has developed a marketplace expectation for the behavior of a company’s representatives (like Nordstrom or Disney) and the organization’s reputation as an innovator (like Tesla) or a “leader feeder” (such as GE). From a performance perspective, a leadership brand shows up not only in stable stock prices but in a higher market value. As the market value of a company is determined by its intangibles, enterprise value is determined by its ability to keep promises, design and deliver on a compelling strategy, ensure technical excellence, hire and retain smart people, build strong organizational capabilities and develop strong leadership. Intangible value grows as custom-ers and investors gain greater confidence about the future fortunes of one firm over others in the same industry. One way companies can evaluate the success of leadership brand efforts is by looking at how much confidence investors have in their future earnings. Companies with strong leadership brands like Disney and Nordstrom have had P/E ratios over 20% higher than their peer companies over the last decade.32 From an execution standpoint, becoming a leadership brand is not easy. According to David Edelman, CMO of Aetna,

97% of Ceos are pursuing digital transformation

and innovation investments to boost

share price and drive growth.11


“A big factor in successful transformation is changing the ways of working. Deploying agile, cross-functional squads of people attacking problems in sprints. As a practical matter, you need to find a common-sense way to bring these people together. That’s why folks like Aetna, IBM and GE are moving to create geo-graphically desired hubs in high-density areas like Boston and Brooklyn with access to talent, research and logistics.”

17 PeRCePTIonS oF FIRM InnoVATIonInnovation and the perception of innovation in the eyes of the customer are primary drivers of share price in an economy that values digital innovation, and in which the majority of company assets are intangible—such as intel-lectual property, patents, trade secrets and proprietary processes. As a consequence, 97% of CEOs are pursu-ing digital transformation and innovation investments to boost share price and drive growth.11 A meta-analy-sis of prior academic research studies by the Marketing Science Institute (MSI) found that firm innovative-ness—as defined by the initiation, development and commercialization of market innovations—had a positive effect on both financial performance and enterprise value. According to the research—which examined 399 inno-vations introduced by six automotive firms and 22,532 innovations introduced by 153 consumer packaged goods firms—the short- and long-term effects of inno-vation on stock market value is significantly positive and greater for radical rather than incremental innovations. In terms of investment spending of firms, innovation has the greatest positive impact on sales growth. This effect is amplified when combined with communications (through advertising). For example, this year Google dis-placed Apple as consulting firm Brand Finance’s world’s most valuable brand because Apple has failed to maintain its technological advantage and has “repeatedly disillu-sioned its advocates with tweaks when material changes were expected,” the study’s authors wrote, who fur-ther explained that the tech giant has “overexploited the goodwill” of its customers, namely because of its failure to generate significant revenues from products like the Apple Watch, and its inability to “demonstrate that genu-inely innovative technologies desired by consumers are in the pipeline.”21 Marketing leaders have responsibility for marketing innovation projects. According to the Gartner CMO Spending Survey, marketing leaders surveyed say they set aside 10% of the marketing budget, on average, for innovation.12

18 PRoDuCT AnD SeRVICe QuAlITyProduct and service quality were identified as high-level strategic marketing drivers that influence customer deci-sion making and are empirically proven to have a direct financial impact on enterprise value by improving brand equity, customer equity and growth, according to an analysis of return on marketing.24 For example, accord-ing to academic research, the value elasticity of product quality, breadth and innovation is 0.3—meaning a 10% increase in perceptions of product quality will drive a 3% increase in stock price.29 In a separate study, a comprehen-sive analysis of 241 products over 12 years compiled by the Marketing Science Institute (MSI) found that a firm’s investments in product quality will pay off in the long term—over six years. The research found the effect was faster for high-reputation brands or brands suffering a sig-nificant decrease in quality.30

Customer perceptions of innovativeness have a direct positive effect on financial

position and firm value.


This “measure twice and cut once” approach to marketing investment is generating more value and growth from marketing investments, assets and strategies. The CMOs that reported the

highest levels of performance (exceeding growth plans by over 25%) are achieving 5% better marketing invest-ment performance and over 7% better business outcomes from those investments. Specifically, these high-perform-ing marketers in the study sample were using data-driven marketing approaches to generate significantly higher returns on their marketing investments and achieving superior business outcomes at every stage of the cus-tomer journey.

High-performing marketers generated over 5% bet-ter media performance than the overall sample across the entire marketing and media mix. In particular, they were:

• Generating significantly (7%) better results from their investments in social, mobile and digital media.

• Mastering the nuances of search and influencer marketing better than their peers.

• Generating significantly (7%) better results from investments in public relations and promotions and incentives.

V HoW HIGH-PeRfoRMInG MaRKeTeRs aRe aCHIeVInG beTTeR InVesTMenT PeRfoRManCe anD GRoWTH oUTCoMes

The most effective organizations are using advances in media measurement, analytics, models and attribution—to quantify, communicate and significantly increase (optimize) the value marketing creates in terms of growth, profitability and enterprise value. The Forbes analysis of over 800 marketing leaders found that high-performing marketers are focusing their investments in data, analytics and marketing technology on building more accurate, predictive and real-time insights, which inform the strategic investment decisions that impact stock price.


Relative Marketing Investment Performance by Stage of the Customer Journey of High-Performing Marketers vs. Total Sample

High Performance: 3 Average Performance: 2 low Performance: 1

Source: Forbes benchmarks from 300 global cmos, 2017

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Relative business outcomes by Stage of the Customer Journey of High-Performing Marketers vs. Total Sample


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The research shows that high-performing market-ers are achieving much better growth outcomes than the total sample from their marketing strategies, investments and actions across 27 measures of business performance across the entire customer journey. By optimizing their marketing investment mix and performance, the high performers were able to get superior business results from their investments, including:●● ●Superior brand awareness outcomes in terms of social

and traditional media performance indicators, as well as generating brand preference. For example, high-performing marketers are over 10% more effective at leveraging social media channels to improve brand awareness.

●● ●Better customer engagement in terms of campaign response, registration, opt-in, calls and time on-site. For example, high-performing marketers are over 9% more effective at generating inquiries, responses and registrations from their customer engagement programs.

●● ●Significantly better demand generation with higher offer response rates and lead volumes.

●● ●Better sales outcomes in terms of ticket size, customer satisfaction (Net Promoter Score) and adoption rates. For example, high-performing marketers are over 10% more effective at turning customers into users and advocates (Net Promoters).

In aggregate, these marketers were getting 7.5% bet-ter results on average across these 27 key performance indicators when compared with the performance of the total sample.

These high-performing marketers are generating superior growth and marketing investment performance because they are enhancing their marketing performance measurement capabilities to become significantly more data-driven in their approach to defining, measuring and optimizing their marketing investments, programs and strategies. The research shows that these high-performing marketers are:●● ●Far more focused on modeling the effectiveness of

the entire marketing investment portfolio at a more granular level, including 20 traditional, digital, social and mobile marketing touch points on the customer journey.

●● ●Faster and more effective at shifting marketing resources and investments across media, channels and stages of the customer journey to optimize perfor-mance and adapt to the market. Leaders are putting in place measurement and analytics systems and pro-cesses that allow them to use marketing performance and forecasting data to improve marketing twice as fre-quently as the rest of the sample.

●● ●Prioritizing digital, social media and mobile marketing investments as their highest-performing investments—at every stage of the customer journey: awareness, engagement, demand generation and sales.

High-performing marketers are over 9% more effective at

generating inquiries, responses and registrations from

their customer engagement programs.


●● ●Dedicating more staff and resources to the develop-ment of the data, analytics, external benchmarks and models needed to support world-class marketing per-formance measurement as a personal and professional imperative. The high-performing marketers had signifi-cantly (27%) larger internal staff dedicated to marketing performance measurement. The high-performing mar-keters invest significantly more resources—6.6% of working gross media spending—on marketing perfor-mance measurement planning than the general sample. Over a quarter (27%) of the highest-performing mar-keters are investing over 10% of their working media budget on performance measurement and analytics—three times the level of the rest of the sample (27% versus 8%).

●● ●Extremely confident in their organizational readiness and competence in measuring marketing performance relative to the overall sample.

The CMOs reporting the highest levels of marketing performance have developed more sophisticated market-ing mix models and revenue attribution measures, which incorporate more data about media and touch points and deliver higher levels of transparency, attribution and connection to financial/sales outcomes. Specifically, mar-keters in the high-performing sample were almost twice as likely to use sophisticated marketing mix models and multi-touch campaign attribution metrics to plan growth strategy, demonstrate sales outcomes, support marketing measurement and justify budgets:

• 55% of high-performing marketers rely heavily on campaign attribution and performance models to support their marketing measurements—twice the level of the rest of the sample.

• 54% report their forecasting decisions are data-driven.

• 50% of high-performing marketers rely heavily on marketing mix models to support their marketing measurements—almost twice the level of the general sample.

• And 41% report they rely heavily on dashboards and data visualization tools to support their marketing measurements.

CMo Assessments of Their Ability to Measure the Return on Their Marketing Investments

To what extent do you completely agree with the following statements about measuring the return on your marketing investments today?

High-Performers Average | Total Sample Average


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The research revealed that high-performing mar-keters are investing in tools to reduce the time, cost and complexity of managing and measuring marketing per-formance. “A big gap for us is the time it takes to model performance in terms of clicks, views and sales in a two-tiered distribution model,” according to Mark McKenna, CMO of the Putnam Funds. “We need to get on-platform and off-plat-form data from distribution partners (Merrill, UBS) to calculate attribution to sales and asset movement.” For example, high-performing marketers are much (50%) faster and more effective at shifting marketing resources and investments across media, channels and stages of the customer journey to optimize performance and adapt to the market. Over a third of high-performing CMOs (34%) report they are agile enough to make data-driven optimization and bud-get reallocations on a daily basis—three times the level of the rest of the sample.

The Resources High-Performing Marketers Rely upon to Support Marketing Performance Measurement vs. Total Sample

What resources and partners do you rely upon to support your marketing measurement?



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98% of CMOs are actively investing in data and

analytics to generate measurable financial outcomes at various

stages of the customer journey.


CMo Assessments of Their Ability to Allocate and optimize Their Marketing Investment Resources

To what extent do you agree with the following statements about allocating marketing investment resources?



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Forward-thinking CMOs understand that without data-driven models, measures and analytic tools for mea-suring the contribution of marketing investments to the enterprise, it will be very difficult for boards, CEOs and CMOs to make the critical trade-off, reallocation and risk investment decisions required to remain competitive in a dynamic and rapidly changing marketplace. Forty percent of CMOs view data and analytic tools as the top way they will address the challenge of measuring marketing return on investment in the long term. Ninety-eight percent of CMOs are actively investing in data and analytics to gen-erate measurable financial outcomes at various stages of the customer journey. On average, CMOs report they plan to increase budgets for measurement and analytics by over 25% over the next three years.

According to Denise Karkos, CMO of Ameritrade: “Analytics need to be at the heart of every marketing orga-nization. I established this in my first 100 days to set the expectation for the relationship for the leadership team and the tone of every conversation going forward. To make this happen, my first priority was to build a world-class analytics function. We brought in a marketing mix model from MarketShare as one of the first investments we made. We worked with a range of partners—from Adobe in web analytics to Acxiom, IBM and Salesforce.com—to build an analytics foundation to demonstrate where marketing was contributing incremental growth.”


The findings of this research demonstrate that increased investment in marketing accountability pays off in terms of growth and value creation. Executives that invest in a “measure twice and cut once” approach to marketing investment are generating better growth and financial outcomes based on their competency in marketing accountability. The high-performing marketers in this study were focusing substantially more investment, staff and time in non-working media on marketing accountability.

12 CHaRaCTeRIsTICs of HIGHlY aCCoUnTable MaRKeTInG oRGanIZaTIons

VI


The challenge for most of the CMOs is that few organizations have a clear picture of “what good looks like” when it comes to marketing perfor-mance measurement. “It’s amazing that marketing

accountability is still an issue after all the years the industry has focused on it. And after all this time we still don’t know what good looks like,” according to Michelle Bottomley, former CMO of Staples. Kevin Hamilton, CMO of Benefitfocus, reinforces the importance of putting the right measure-ment people, processes, incentives and technology in place to support growth. “As an industry, we as marketers still do not have a consensus marketing maturity model that spells out the fundamental skills, processes, incentives and technology infra-structure required to measure marketing performance effectively.

Even the external analysts we work with lack the benchmarks and marketing maturity models I need to identify where our organization could be doing a better job measuring and man-aging marketing performance. This makes it difficult for me to communicate the value of marketing investment to the CEO.”

To address this need, the Forbes Marketing Accountability Initiative gathered the commercial, aca-demic and market research compiled in this report to identify a dozen material ways high-performing mar-keters are building world-class marketing accountability capabilities that create more value from marketing strat-egies, investments and actions. These have been captured in the Forbes Marketing Accountability Maturity Model, which is outlined in summary form and explained below.

12 Characteristics of Highly Accountable Marketing organizations

1. Cross-Functional organizational Structures: Growth is a “team sport” that requires high degrees of collaboration across business units and functions.

2. Measurement Skills and Competencies: Marketing accountability requires superior “below the line” skills in analytics, modeling and financial integration.

3. Functional and Role Alignment: Marketing must be functionally aligned with the growth strategy and enabled, partnered and resourced to achieve company growth goals.

Pe

oP

le

4. Common Funding Processes: Centralized funding of short-term, long-term and strategic marketing investment maximizes ROMI and facilitates trade-offs.

5. Common Planning Processes: Common planning processes that are data-driven, frequently updated and forecastable improve financial outcomes.

6. Information-Sharing Processes: Documenting, sharing and leveraging information and learnings across the organization directly impacts enterprise value.

PR

oC

eS

S

7. A Common economic Purpose for Marketing: Leadership must agree upon the economic purpose and contribution of marketing investments and actions to grow enterprise value.

8. Collective Growth Rewards and Incentives: Executive stakeholders must share growth incentives to foster collaboration and achieve collective growth outcomes.

9. Common enterprise Measures and KPI: Company growth performance requires connecting the dots across many data sources to fuel reliable and externally validated measures of the financial impact of marketing investments.

InC

en

TIV

eS

10. Common Customer ID and Profiles: Customer profiles are the foundation of marketing mix and attribution models that span investments, channels and stages of the customer journey.

11. Planning, Attribution and Forecasting Models: Measurement models must incorporate a wide range of detailed performance data to support strategic CMO decision making and investment trade-offs.

12. broad Data Sources and Degrees of Integration: The more internal and external data sources integrated into marketing planning models, the more robust performance measurement models become.

Sy

ST

eM

S


●● investing in people. The fastest-growing organiza-tions are building staff and skills in the core “below the line” measurement and analytics capabilities essential to improving marketing performance measurement and driving better marketing results. For example, the research identified financial integration, interpreting marketing performance data and executing sophisticated attribution models as the top skill gaps they need to fill to become more effective and accountable. For example, over a quarter of the highest-performing marketers are invest-ing more than 10% of their working media budget on performance measurement and analytics. And almost a third (31%) of high-performing marketers report they are establishing centers of excellence in performance mea-surement over the next 12 months to help them become leading marketing organizations.4 This allows organi-zations to pool modeling, financial and data integration talent essential to marketing accountability and create a platform to spread and share best practices and insights to the broader organization.

●● Processes: common data-driven planning pro-cesses to provide CMOs fast, frequent and forecastable guidance to reallocate resources across a wide range of investments to maximize both short- and long-term goals. Improving speed to insights and the ability to adjust and refine marketing investment allocations frequently has become fundamental to growth, according to David Edelman, CMO of Aetna. “We need to move faster and be more dynamic. We cannot take three years to plan, deploy and

ORGAnIzATIOnS THAT SEEK TO BUILD A COMPETEnCy In

DATA-DRIvEn MARKETInG AnD MEASUREMEnT SHOULD

FOCUS On THESE AREAS.

The majority of high-performing marketers (61%) are establishing single

customer profiles.


run a customer acquisition model. That’s too long. We need to move towards creating early warning systems rather than build-ing models based on the past (rearview mirror). The biggest risk is the failure to estimate the speed and size of change early enough.” Reinforcing this call to action—34% of high-perform-ing marketers report they are agile enough to make daily data-driven adjustments to their marketing programs and budgets to optimize marketing performance in real time.4 Forty percent of automotive brands are adjusting their marketing programs using real-time data.5 Establishing common, enterprise-wide processes for sharing perfor-mance data makes it easier to:

• Update marketing planning assumptions based on market feedback, performance and trends more frequently.

• Systematically apply marketing insights to the planning and funding process.

• Evaluate a higher percentage of marketing programs and budgets using common measures and thresholds.

●● incentives: establishing common rewards and financial measures of success to foster the communi-cation and collaboration needed to drive growth. Since growth is now a “team sport,” the CEO, CFO and the entire leadership team must agree upon the economic outcomes the CMO can generate and the contribu-tion of marketing, strategies, investments and actions to grow enterprise value. Establishing a common economic purpose includes gaining agreement on the return on marketing investments (ROMI) and establishing com-mon financial measures of the contribution of marketing to corporate financial goals. “Developing a collective under-standing of the contribution of every organization to growth is important because growth has become a team sport,” according to Denise Karkos, CMO of Ameritrade. “As an individ-ual contributor, marketing has the potential to drive a significant volume of leads at the front of the funnel. But thinking like a shareholder means bringing in the right quality leads—folks who have the money and interest to do business with you—and developing sustainable relationships with them. That requires teamwork. You need to partner with IT, sales, compliance, service and product to drive sustainable growth—quality relationships. In our industry, we partner with advisors to deepen relationships, legal and compliance to accelerate speed to market, and product is our partner on digital transformation.” Establishing a common economic purpose for marketing will give all market-ing staff, agency and data partners a more comprehensive view of their individual contribution to sales, growth and firm performance and help them work as a team towards common corporate financial and growth goals.

●● Performance measurement systems: Marketers that are investing in technologies to help capture, inte-grate and analyze data from many sources are achieving higher degrees of marketing accountability in real time. The high-performing marketers in this study are invest-ing in technologies to help capture, integrate and analyze data from many online, offline and third-party sources to manage the detailed analysis required to develop mar-keting insights as well as structured recommendations to support executive-level trade-off conversations and deci-sions. Specifically:

The number one action marketers plan to take in order to improve measurement in the future is to invest in technologies that help eliminate data integration obstacles. For example, CMOs rate consolidating data into a single source of truth and integrating critical platforms to support data-driven measurements as the top two steps they need to take over the next 12 months to become a leading marketing organization.

2 Over a third (39%) of high-performing marketers are developing data maps to identify silos of first-, second- and third-party data as a top action they will take in the next 12 months to improve marketing performance.

3 The majority of high-performing marketers (61%) are establishing single customer profiles to incorporate more data about media, channels and touch points into their marketing performance measurements and models to deliver higher levels of transparency, attribution and connection to financial outcomes.5

4 Marketers overall are making it their top technology investment priority to invest in marketing solutions and in-house technologies including marketing cloud solutions, customer experience management, CRM and web analytics platforms to support performance measurement by collecting and leveraging first-party data from owned and earned marketing channels.


s billions of customers engage with digital, mobile and social channels almost six hours a day, digi-tal customer experience management platforms are becoming a much bigger part of market-

ing performance measurement systems.14 Given the sheer number of product launches, competitive responses, inno-vations, disruptions, customer conversations and digital word of mouth exchanges, market events and signals that inform or impact the future cash flow of the enterprise are happening at an accelerating pace.

So a complete picture of the customer experience and real-time customer insights has become essential for inform-ing strategic growth investment and resource allocation decisions that impact share price—on a frequent if not daily basis. And that information needs to be shared broadly to the stakeholders in the best position to interpret it and to act.

Managers will not realize value unless they have enter-prise processes for quickly informing boards, executive decision makers and brand owners with customer insights quickly enough to make decisions and act in ways that cre-ate value rather than destroy it. This is a major reason that academic research proves organizational knowledge shar-ing and measurement competency have such a large causal impact on firm value in a digitally connected world.

The ability to aggregate customer intelligence from the many first-party data sources within the enterprise, integrate them with a persistent and durable customer iden-tifier such as a social identifier, and monitor and share voice of customer insights in real time with many stakeholders will become critical in the next 12 to 24 months. Given

The analysis establishes an empirical framework that helps business leaders connect marketing investments, assets and strategies to firm performance by clearly defining the core drivers of enterprise value. Most of these drivers are “customer-driven” and subject to the day-to-day experiences, sentiments and behaviors of customers, influencers and decision makers in the market.

THRee sTePs MaRKeTeRs aRe TaKInG To beTTeR sUPPoRT MaRKeTInG DeCIsIon MaKInG WITH Real-TIMe VoICe of THe CUsToMeR DaTa anD InsIGHTs

VII

Billions of customers engage with digital, mobile and social channels almost

six hours a day.


the wide range of platforms and approaches for doing this, managers need to be mindful that speed and organizational knowledge sharing is more important than perfection in the current market environment.

“Social, digital and mobile channels are particularly important sources of information critical for managing brands, relationships and reputations in the current business environ-ment. Given the speed with which negative momentum builds, you must have your radar tuned constantly to the right frequen-cies to keep you ahead of trouble. There are many ways to do this, from fully staffed, internal command centers that look like NASA Mission Control to more automated and outsourced customer experience management solutions. But one way or another, you need to keep an ear to the ground and monitor the digital conversation in real time.” according to Peter Horst, author of Marketing In The #Fakenews Era: New Rules For A New Reality Of Tribalism, Activism, And Loss Of Trust.

This research identified three ways that best-in-class marketers are taking advantage of advances in analytics and customer experience management platforms to sup-port marketing decision making with real-time voice of

the customer data and insights. Best-in-class marketers like Microsoft, Dell, McDonald’s, Nike, Starbucks and Verizon are establishing customer experience management plat-forms: These platforms are designed to get control over more of the customer data by managing thousands of digi-tal/social accounts and processing millions of conversations with digitally connected customers across the organization. These marketers are aggregating, integrating and sharing these insights with key stakeholders across their organiza-tions to keep their fingers on the pulse of the key drivers of enterprise value by taking three steps.

Three Steps High-Performing Marketers Are Taking to Support Marketing Decision Making With Real-Time Data and Insights

Reduce the time and complexity of consolidating first-, second- and third-party data from digital touch points from across the enterprise

to provide fuel for strategic decision making by marketing teams and senior leadership

Pair data about customer preferences and actions around a single identifying profile to create

a more complete picture of the customer experience

Establish value-based measures, indexes and command centers to

provide a more complete picture of customer interactions to support

strategic growth, market response, resource allocation and trade-off

decisions in real time

Brand value and

Momentum

Quality of Products and

Services

Digital Platform

Performance

Customer Loyalty and Experience

1

43

2

Aggregate Voice of Customer Data From Many Sources

Content

Digital Media

Reviews

Location Influencer

E-Commerce

Care

Social

Service

Paid Media

Third-Party Data

Location Behavior

Owned Channels

Earned Media

Integrate Data to Create a 360-degree View of the Customer

Monitor and Share Customer Insights in Real-Time


best-in-class marketers are reducing the time and complexity of consolidating first-, second- and third-party data from digital touch points from across the enterprise to provide fuel for strategic decision making by marketing teams and senior leadership.

The number one action marketers plan to take in order to improve measurement in the future is to invest in technologies that help eliminate data integration obstacles. CMOs rate consolidating data into a single source of truth and integrating critical platforms to support data-driven measurements as the top two steps they need to take over the next 12 months to become a leading marketing organization. As a first priority, marketers are integrating first-party data from internal sources, including web analytics, marketing cloud solutions, CRM and web analytics to support performance measurement. Over time they are prioritizing third-party and second-party platforms as data sources to augment and deepen their models and create a more complete 360-degree picture of the customer.

Specifically, best-in-class organizations are aggregating voice of customer data by tracking and engaging millions of customers across channels, business units and geog-raphies at scale by:

• Using customer experience management platforms to extract first-party data and customer insights from the marketing systems they have in place now—including content management, influencer, e-commerce, paid digital media, CRM, customer service, social monitoring and email marketing platforms.

• Leveraging digital and social media as a real-time voice of the customer data source by managing over 20 different digital channels and thousands of social accounts, and by processing millions of conversations with digitally connected customers across the organization.

• Accessing granular data about individual customer interactions to establish a unique and proprietary in-house data source that can yield competitive advantage.

Aggregate voice of customer data from many sourcesSTEP 1

Content

Digital Media

Reviews

Location Influencer

E-Commerce

Care

Social

best-in-class organizations are pairing data about customer preferences, behaviors, sentiments and actions around a single identifying profile to create a more complete picture of the customer experience.

Most high-performing marketers (61%) are pairing granular customer interaction data from a variety of sources with a single customer profile—a cookie, email address, social ID, cell phone number or other unique identifier—to create a complete picture of the customer experience that spans many different channels, touch points and stages in the marketing journey.

They are developing common customer profiles as the foundation of voice of the customer reporting, analysis and measurements, which allows them to span many chan-nels, touch points and stages in the marketing journey. Social media supports this effort by providing a durable, persistent and near universal customer identifier that makes it easy to connect online and offline sources of marketing performance data. Leading marketers are leveraging customer experience management platforms that make it easy to systematically pair voice of the customer data from a wide range of marketing tech-nology systems regardless of the mix of customer-facing solutions in the marketing technology stack—including marketing automation, customer relationship (CRM) and data management (DMP) platforms—to create a more unified 360-degree view of the customer experience.

Integrate data to create a 360-degree view of the customerSTEP 2

Service

Paid Media

Third-Party Data

Location Behavior

Owned Channels

Earned Media


best-in-class marketers are establishing value-based measures, indexes and command centers to provide a more complete picture of customer interactions.

Marketers are creating increasingly robust measurement and reporting tools that incorporate a wide range of detailed customer data to support strategic decision mak-ing and investment trade-offs. Adding third-party real-time voice of the customer data from social, mobile and digital channels can add significant insights in terms of brand, product, location, lifestyle and behavioral insights over a long look-back window. With “always on” updates from customer experience management platforms, marketing leaders can get a more complete picture of the customer journey that allows them to dramatically improve performance by targeting marketing towards narrow time, receptivity and event-trigger windows.

In order to provide business leadership situational awareness and customer insights in real time, best-in-class marketers are developing command centers that help them make real-time decisions to protect and develop the brands, customer equity, experi-ences and influence that drive long-term revenue, profit and share price growth. These customer experience management tools allow management to keep its fingers on the pulse of the customer and support real-time strategic decision making. The best mar-keters are establishing value-based measures, indexes and command centers that report customer insights—in terms of brand preference, loyalty, influence, experiences and perceptions—in the context of the primary drivers of firm value and financial perfor-mance for their organizations.

“The keys to creating useful and actionable insights from an ocean of voice of the customer information are speed and the ability to filter and calibrate what you are hearing in the context of your strategic value drivers for your business. Any voice of the customer command center has to distill and filter customer insights in the context of the unique strategic value drivers for your busi-ness such as strategic brand awareness, favorability or preference metrics—or perceptions of quality and innovation,” according to Peter Horst, author of Marketing In The #Fakenews Era: New Rules For A New Reality Of Tribalism, Activism, And Loss Of Trust.

Marketing leaders like Microsoft, Dell, McDonald’s, Nike, Starbucks and Verizon have established processes and command centers that allow them to quickly share these insights with key stakeholders across their organizations and assess real-time cus-tomer insights in the context of strategic decision making by:

• Monitoring and adapting product launch campaigns in real time based on market response and receptivity.

• Getting input, ideas and feedback on new product development from customers.

• Adapting marketing content based on shopping, consumption and conversion data from millions of customers.

• Delivering voice of the customer feedback from hundreds of millions of customers to product, brand, service and corporate leadership.

• Analyzing, anticipating and resolving thousands of service cases and complaints at scale across the enterprise.

Monitor and share customer insights in real timeSTEP 3

Brand value and

Momentum


Services

Digital Platform

Performance


1

43

2


Analytics Make the best Marketers Measurably better

Investing in Performance Measurement yields More Growth

High-performing marketers that invest in marketing accountability and data-driven marketing approaches are achieving better returns on marketing investments and superior levels of growth performance

5% higher levels of performance from their marketing investments across 11 categories of investment

5%7.5% better growth outcomes across 27 measures of business performance at every stage of the journey

7.5%

A SuRVey oF 800 MARKeTInG exeCuTIVeS by THe FoRbeS MARKeTInG ACCounTAbIlITy InITIATIVe AnD MASb FounD THAT HIGH-PeRFoRMInG MARKeTeRS ARe GeneRATInG SuPeRIoR

GRoWTH AnD MARKeTInG InVeSTMenT PeRFoRMAnCe by uSInG ReAl-TIMe VoICe oF THe CuSToMeR InSIGHTS To SuPPoRT MARKeTInG PeRFoRMAnCe MeASuReMenT AnD RePoRTInG

High-Performing Marketers Are Taking Three Steps to Support Marketing Decision Making With Real-Time Data

40% of high-performing marketers are applying data to marketing optimization and resource allocation decisions on a daily basis, three times the level of the average

40%49% of high-performing marketers are integrating critical platforms to support data-driven measurement as the top action they will take in the next 12 months

49%

Reduce the time and complexity of consolidating first-, second- and third-party data from digital touch points from across the enterprise

to provide fuel for strategic decision making by marketing teams and senior leadership

Pair data about customer preferences and actions around a single identifying profile to create

a more complete picture of the customer experience

Establish value-based measures, indexes and command centers to

provide a more complete picture of customer interactions to support

strategic growth, market response, resource allocation and trade-off

decisions in real time

Brand value and

Momentum


Services

Digital Platform

Performance


1

43

2

Aggregate Voice of Customer Data From Many Sources

Content

Digital Media

Reviews

Location Influencer

E-Commerce

Care

Social

Service

Paid Media

Third-Party Data

Location Behavior

Owned Channels

Earned Media

Integrate Data to Create a 360-degree View of the Customer

Monitor and Share Customer Insights in Real Time


a fRaMeWoRK foR bUIlDInG a COMMAND CENTER

To sUPPoRT MaRKeTInG DeCIsIon MaKInG WITH

Real-TIMe VoICe of THe CUsToMeR DaTa anD InsIGHTs

VIII


brand Value

brand Valuebrand Preferencebrand Momentum

Customer SatisfactionCustomer loyalty

Customer Relationship Strength

Customer equity

Digital Customer experienceowned Digital Marketing Performance

Digital Sales Channel Performance

Digital Growth Platforms

employee engagementPerceptions of Innovation

Product and Service Quality


A FRAMEWORK FOR BUILDInG A CoMMAnD CenTeR TO SUPPORT MARKETInG DECISIOn MAKInG WITH REAL-TIME vOICE OF THE

CUSTOMER DATA AnD InSIGHTS


Brand value is an important measure: It is a key driver of enterprise value because it refers to the price (premium) a consumer is willing to pay for a specific brand, over and above a baseline.

An empirical analysis by the Marketing Accountability Standards Board using the latest global standards shows the brand by itself is worth nearly 20% of corporate value of a consumer marketing business, and about half that in a B2B organization.

There are two primary ways voice of the customer insights can directly inform executive leadership on the state and direction of brand value:

Brand awareness metrics: Brand awareness measures allow marketers to quantify levels and trends in consumer knowledge and awareness of a brand’s existence over time.

2 Brand trust metrics: These track the willingness of consumers to rely on the ability of the brand to perform its stated function based on their direct experiences with brands, and other evidence of brand safety, honesty and reliability to reinforce consumers’ beliefs.

These metrics are derived from a variety of voice of the customer data sources—including social listening sur-veys, ratings, customer conversations and customer care interaction data from digital channels. These metrics can be compared with benchmarks of prior periods, different markets and competitors. And to provide deeper business context, brand awareness metrics are structured to reflect the different geographic markets, segments and competi-tive cohorts a given brand will operate against.

These measures are correlated with brand value because they provide measurable evidence of the con-sumer factors that indicate increases in brand strength as well as early warnings of factors that can lead to the destruction of brand value.

In practice, brand awareness and trust measures are valu-able and actionable to executive leadership because they help anticipate issues that can impact growth and value by providing executives with early warning on market trends, competitive disruptions and changes in customer attitudes about brands that can impact future firm value. Timely voice of the customer insights about brand value can focus management on the key strategic decisions about aspects of their business that impact value, as well as corrective actions and adjustments to marketing tactics to improve perfor-mance in the short term.

brand Value

Brand value is a measure that encompasses the name, logo, image and perceptions that identify a product, service or provider in the minds of customers.

Timely voice of the customer insights about brand value can focus management on the key

strategic decisions about aspects of their business that impact

value, as well as corrective actions and adjustments to marketing

tactics to improve performance in the short term.


Brand preference is a key driver of enterprise value because higher brand preference changes customer behavior in ways that create future cash flow and profits in terms of price premiums,

share of wallet, retention and conversion rates. An analy-sis of 220 consumer products by the Marketing Science Institute (MSI) found that brands with superior brand preference scores commanded price premiums of 26% on average, even when brand quality is the same.

There are two primary ways digital voice of the cus-tomer insights can directly inform executive leadership on the state of brand preference in real time:

Share of voice metrics, which measure the share of voice for the brand across digital channels relative to competitors.

2 Voice of the customer benchmarks, which attempt to quantify the impact of marketing activities in the hearts and minds of current and potential customers.

These metrics are compiled from a variety of digital channels using listening tools, customer ratings and cus-tomer care interactions. They can be calibrated to focus on specific customer segments, markets and competitive categories to provide context to a particular business.

These measures are causal to value creation because they identify the relative standing of a company’s brand to the competitors in the consideration set and the nature of the conversation about brand preference and utility.

In practice, these measures are actionable and use-ful to executive leadership because they provide ongoing tracking of core customer preferences and early warn-ing on changes in customer preferences or competitive disruptions in the market. They help inform and focus management on the need for strategic, long-term, brand-building investment decisions to protect and grow their core customer franchise and sources of profit margins.

brand Preference

Brand preference (or brand choice) is a key indicator of the strength of a brand that measures the impact of marketing activities on the hearts and minds of customers by quantifying the degree to which specific brands are preferred under assumptions of equality in price and availability.

bRAnD PReFeRenCe

Share of Voice

By Competitor By Channel By Segment By Attribute

Millennials ●Generation x boomers ●Silent Generation

A1,200K

b760K D

800K

C600K

e

F

12% Images

8% Comments

20% Forums

55% blogs

5% Videos


Brand momentum is a strategic marketing driver that influences customer decision mak-ing and is empirically proven in academic research to have a direct financial impact on

enterprise value, according to the analysis “Return on Marketing: Using Customer Equity to Focus Marketing Strategy.”37

There are two primary ways voice of the customer insights can directly inform executive leadership on shifts in brand momentum:

The strength of customer sentiment against a cohort of competitors.

2 Trends in sentiment, which provide a longitudinal view of positive or negative sentiment over time.

These metrics are derived from a variety of online data sources—including online engagement, brand mentions, social listening and volume of engaged followers—using a range of indicators. Indicators measure brand perfor-mance, market influence and impact on brand awareness in the context of the brand and category of the business.

These measures are correlated with brand momentum because they provide a quantitative measure of consumer trends over narrow windows of time to provide leader-ship real-time warning on consumer response to news, announcements or service issues.

In practice, these measures are useful to executive lead-ership because they are a leading indicator on market trends, brand health and shifting attitudes about brands in a fast-moving digital world. Understanding the strength and trajectory of customer sentiment in real time helps inform and focus management on the important decisions about communications, positioning, reputation management and market strategy that can impact share price.

brand Momentum

Momentum is defined as impetus gained by movement. For brands, this means they gather speed as they operate. The concept of brand momentum represents a measure of efficiency of effort and consistency in marketing execution.

Understanding the strength and trajectory of customer

sentiment in real time helps inform and focus

management on the important decisions about

communications, positioning, reputation

management and market strategy that can

impact share price.


Brand preference is a key driver of enterprise value because higher brand preference changes customer behavior in ways that create future cash flow and profits in terms of price premiums,

share of wallet, retention and conversion rates. An analy-sis of 220 consumer products by the Marketing Science Institute (MSI) found that brands with superior brand preference scores commanded price premiums of 26% on average, even when brand quality is the same.

Customer satisfaction is a key driver of enterprise value because it is perhaps the best indicator of how likely it is that the firm’s customers will make further pur-chases in the future. Academic research by the Marketing Science Institute (MSI) shows improvements in customer satisfaction boosted firm performance by enhancing sales growth, margins and enterprise value.30

There are two primary ways voice of the customer insights can dynamically inform executive leadership about the state of customer satisfaction across segments, channels and business units:

Measuring responses to service events, by track-ing the speed, coverage, quality of response to service and customer care events over regular periods.

2 Tracking customer sentiment about services in terms of words, questions, conversations across a broad spectrum of digital touch points.

These metrics are derived by tapping into customer care interactions and surveys as well as monitoring con-versations across social and digital touch points. Measures are structured by different product groups and customer classes to provide greater context to an individual business.

Customer satisfaction measures are causal to value creation because they provide early warning on service, product quality, customer onboarding or adoption issues that can affect sales, market share and profits.

In practice, these measures are actionable and useful to executive leadership because they quickly identify tac-tical and strategic actions leadership can take to improve performance. Tactically, real-time event and sentiment tracking provide customer-facing functions advance notice to take corrective action, or to make proscriptive fixes and communications in advance of bigger problems. Strategically, these satisfaction metrics help to focus man-agement on the important aspects of fulfilling customers’ expectations, in ways that ensure customers have a posi-tive experience with the company’s goods and services.

Customer Satisfaction

Customer satisfaction measures customers’ perceived satisfaction with their experience of a firm’s offerings, generally using survey data and expressed as a rating. This metric quantifies an important dynamic. Customer satisfaction provides a leading indicator of consumer purchase intentions, loyalty and potential for effective word of mouth marketing. Customer satisfaction data is among the most frequently collected indicators of market perceptions.


Customer loyalty is a key driver of enterprise value because loyal, enthusiastic customers who love doing business with your organiza-tion and are willing to refer others are worth

far more to your company than passive customers or detractors. Very small changes in customer loyalty can make a major difference to the lifetime value calcula-tion, particularly in a world of on-demand and SaaS solutions.

There are several effective ways voice of the cus-tomer insights can directly inform executive leadership about the state and trajectory of customer loyalty across the enterprise.

Measuring customer referrals by tracking both referral actions and intent with a Net Promoter Score.

2 Tracking customer recommendations that involve purchase decisions about your offering relative to competitors’.

3 Measuring customer interactions along the journey—before, during and after direct engagement with your brand.

These metrics are aggregated from customer conver-sations tracked across many digital, blog and social touch points and data sources and derived from survey data using Net Promoter Score (NPS) calculations.

There is a causal relationship between these met-rics and share price, as they track factors and transactions that directly impact customer decisions and future cash flow potential. Bain & Company research has popularly established a strong link between organic growth and a company’s Net Promoter Score.

In practice, these measures are useful to executive lead-ership because they identify tactical actions leadership can take to improve performance in terms of corrective actions, customer service, rewards and interventions. For example, monitoring customer conversations involving decision making in real time provides an actionable way to directly impact customer decision making with validation content and recommendations.

Customer loyalty

Customer loyalty (and retention rate) metrics monitor firm performance in retaining customers, and by extension increasing customer profitability and lifetime value.

very small changes in customer loyalty can make a major difference

to the lifetime value calculation, particularly

in a world of on-demand and SaaS solutions.


Customer Relationship Strength

Customer relationship strength—in terms of the size, volume, quality and frequency of direct engagement with customers—is a practical and widely applicable measure of marketing performance that is highly correlated to enterprise value.

cademic analysis of the return on marketing found that strong customer relationships influence cus-tomer decision making and are empirically proven to have a direct financial impact on

enterprise value by improving brand equity, customer equity and growth.

There are several primary ways voice of the customer insights can directly inform executives about the level of customer relationship strength an organization has:

The number of customers that are actively engaged with a brand in digital, social and sales channels.

2 The volume and frequency of engagement with those customers.

These metrics are compiled from customer interac-tions through ratings, content consumption, conversations, engagement, care interactions and location insights.

These measures are correlated to value creation because academic analysis of the return on marketing has found that strong customer relationships influence cus-tomer decision making and are empirically proven to have a direct financial impact on enterprise value by improving brand equity, customer equity and growth.

In practice, these measures are actionable and useful to executive leadership because they dynamically mon-itor the overall health of the organization’s customer relationship assets and help focus executives on making the crucial trade-off decisions across competing strategic growth initiatives aimed at customers.

CuSToMeR RelATIonSHIP STRenGTH

Customer engagement levels

The level and degree of customer engagement over time

number engaged ●level of engagement

Jan. Feb. Mar. April May June July Aug. Sept. nov.

23

5

7

89

1

1 2

4

67

8


Owned digital marketing performance is a key driver of enterprise value because a large part of the modern marketing investment mix is invested in these channels, and “multi-channel”

customers—who shop across many different online and offline channels—provide firms a greater ability to mon-etize their assets.

There are several primary ways voice of the customer insights can directly inform leadership on the state of owned digital marketing performance:

Monitoring levels of engagement in digital channels in terms of visits, dwell time, content consumption and purchase actions.

2 Measuring content effectiveness in terms of ability to drive engagement, conversion and consumption.

These metrics are derived from a variety of digi-tal website, blog, content consumption and conversion rate data from owned website, blog, influencer and email platforms.

These measures are causal to value creation because they track a firm’s ability to leverage owned marketing assets to gain greater reach and traffic with limited market-ing resources and at the same time strategically lower the cost of sales.

In practice, these measures are actionable and useful to executive leadership because they help inform and focus management on the key strategic decisions and operational aspects of their digital channels to improve performance and impact.

owned Digital Marketing Performance

Digital marketing channel performance is an outcome measure of owned digital channels, including websites, blogs, email and content marketing aimed at earned search media performance. The performance of these distribution channels can be assessed by considering a number of performance dimensions, including channel effectiveness, channel efficiency, channel productivity and channel profitability.

Owned digital marketing performance is a key

driver of enterprise value.


Digital sales channel performance is a key driver of enterprise value because the addition of an internet channel to a firm’s channel portfo-lio has been shown to have a favorable impact

on stock market valuation when it expands market reach with little channel conflict.30

There are two primary ways real-time voice of the customer insights can help executive leadership man-age and grow the contribution digital channels make to growth and profits:

Measuring the levels and quality of engagement at the moment of purchase—from content conversion to commerce.

2 Tracking customer ratings and reviews at the bottom of the purchase funnel.

These metrics are developed from commerce channel insights including transactional, customer ratings, content consumption and conversion data available within the e-commerce system.

Academic research has identified a causal relationship between these measures and value creation because a 10% increase in the effectiveness of digital channels will drive a 2.2% increase in stock price.

In practice, these measures are actionable and use-ful to executive leadership because they identify actions leadership can take to improve performance of online commerce channels in terms of adjustments to pricing, promotion, targeting and placement.

Digital Sales Channel Performance

The performance of digital (e-commerce) sales channels can be assessed by considering a number of performance dimensions, including channel effectiveness, channel efficiency, channel productivity and channel profitability.

Digital sales channel performance is a

key driver of enterprise value.


The digital customer experience is a key driver of enterprise value because, to the digitally empow-ered customer, the experience matters more than products and pricing. As a consequence, the

majority (89%) of marketers are making the customer experience the focal point of the branding, design, deliv-ery and differentiation of their products and services to the digitally empowered customer.3

There are several primary ways voice of the customer insights can directly and dynamically inform leadership about the state of the digital customer experience:

Tracking customer instances (or stories) of surprise and delight, in combination with…

2 Tracking customer instances (stories) of friction-free transactions across many channel touch points.

These metrics are compiled from a chain of customer listening, survey, ratings, content consumption, conversion rate, customer conversation, care interactions and location data from digital channels.

These measures are correlated to value creation: The Marketing Science Institute (MSI) found that e-service innovations—defined as the number of internet-based service innovations introduced by a firm—have a positive effect on firm performance because objective customer reviews help build online trust and develop electronic word of mouth.30

In practice, these measures are actionable and use-ful to executive leadership because they help anticipate emerging service and customer adoption issues in time to take corrective action, and they identify opportunities for management to improve performance by optimizing the right content with the right person and time to enhance the customer experience.

Digital Customer experience

The digital customer experience measures a combination of reduced negative feelings associated with the friction and inconvenience of doing business on the part of the customer, with feelings of surprise and delight.

DIGITAl CuSToMeR exPeRIenCe

Customer Interactions by Type

Customer instances over time

Friction Free ●Surprise and Delight


employee engagement

A company’s employees are its most valuable assets. In a world driven by digital, mobile and social channels, employee advocacy is essential. The definition of employee advocacy is the promotion of your brand by the people who work for it. People advocate for their employers on social media all the time.

Employee talent, leadership and culture can have a positive impact on brand and enterprise value. The book Agile Talent defines a “leadership brand” as a company that has developed a marketplace

expectation for the behavior of a company’s representa-tives (like Nordstrom or Disney) and the organization’s reputation as an innovator (like Tesla or Apple).

There are two practical ways voice of the customer insights can directly inform employee engagement:

Measuring the strength of employee advocacy in social, mobile and digital channels.

2 Tracking the breadth of employee engagement in terms of actions, recommendations and advocacy.

These metrics are developed by aggregating a mix of social listening, customer conversation and care inter-actions, and location across a variety of customer touch points.

There is a causal relationship between employee engagement and enterprise value because, as the mar-ket value of a company is determined by its intangibles, enterprise value is determined by the ability of employ-ees to keep promises, ensure technical excellence, hire and deliver customer service.

In practice, these measures are actionable and useful to executive leadership because they prioritize actions leadership can take to improve customer perceptions of the brand through training, service interventions and employee development.

CuSToMeR RelATIonSHIP STRenGTH

employee Advocacy and engagement

Engagement Over Time Engagement by Channel

likes 300 ●Comments 52 Shares 100 ●Clicks 6000

oct 10 oct 15 oct 18 oct 20 nov 6 nov 12 nov 22 nov 29 linkedin

●Twitter

Facebook

●Google

20%

20%

55%

5%


Tracking, managing and improving customer per-ceptions of innovation is important because 97% of CEOs are pursuing digital transformation and innovation investments to boost share price and

drive growth.11 Marketing leaders surveyed by Gartner report they have set aside 10% of the marketing budget, on average, for innovation.12

There are two primary ways voice of the customer insights can directly help management track and manage customer perceptions of innovation:

Tracking customer sentiment in terms of customer/market perceptions of innovativeness relative to competition.

2 Monitoring levels of customer-driven innovation through customer service interactions and resolutions.

These metrics are developed from data from customer care surveys, ratings, conversations and service events.

These measures are causal to value creation because customer care channels and interactions are a primary source for “demand-pulled innovation” (also known as customer-driven innovation), which is largely stimulated by the needs, wants or desires of customers.

In practice, these measures are actionable and useful to executive leadership because they provide proprietary insights into unmet customer needs and real-time insights into product launch and customer adoption issues in time to adapt and solve them.

Perceptions of Innovation

Customer perceptions of firm innovativeness are a measure of a firm’s ability to address customer problems through invention, collaboration and problem solving. A meta-analysis of prior academic research studies by the Marketing Science Institute (MSI) found that firm innovativeness—as defined by the initiation, development and commercialization of market innovations—had a positive effect on both financial performance and enterprise value.

Tracking, managing and improving customer

perceptions of innovation is important because 97%

of CEOs are pursuing digital transformation

and innovation investments to boost share price and drive growth.11


Product and service quality have been identified in academic research as strategic marketing driv-ers that influence customer decision making and are empirically proven to have a direct financial

impact on enterprise value by improving brand equity, customer equity and growth, according to an analysis of return on marketing.24

There are two primary ways voice of the customer insights can directly inform product and service quality:

Assessing customer sentiment—positive, negative and neutral—in customer care channels.

2 Aggregating ratings and reviews in purchase and consideration channels—relative to competitive cohorts.

These metrics are aggregated from online customer ratings from a variety of structured and unstructured sources including comments, ratings sites, social media and blogs. These measures can be tailored to customer segment, brand category and competitive cohort to pro-vide context to a particular business.

These measures are causal to value creation because the quality and valence (direction) of objective online reviews have a direct impact on customer perceptions and can build online trust and generate online word of mouth that influence future decision making, according to research conducted by the Marketing Science Institute (MSI).30

In practice, these measures are actionable and useful to executive leadership and product managers because they help anticipate issues that can impact growth and value, including emerging service issues and product launch progress.

Product and Service Quality

Perceived product and service quality (or relative perceived quality) is a measure of attitude involving consumer rating of a brand’s product compared with others in its category or market.

Product and service quality have been identified in

academic research as strategic marketing drivers that influence

customer decision making.


Stephen Diorio

Tony Pace

ABOUT THE AUTHORS

Stephen Diorio is the Director of the Forbes Marketing Accountability Initiative, where he helps CEOs, boards and CMOs create new growth and enterprise value by identifying, quantifying and growing the untapped brand, customer and digital upside in their business. Mr. Diorio has helped hundreds of leading brands to grow faster, differentiate their cus-tomer experience, and improve return on marketing investment (ROMI). He is author of Marketing Accountability: A CEO Guide to Driving Enterprise Value by Maximizing the Effectiveness of Marketing Investments, Strategies and Assets (Forbes 2017) and Beyond e: 12 Ways Technology Will Transform Sales & Marketing Strategy (McGraw-Hill).

Tony Pace is a leader in the marketing industry on the issues of marketing accountabil-ity, transparency and marketing performance improvement. He is the President and CEO of the Marketing Accountability Standards Board (MASB) and a leader of the Forbes Marketing Accountability Initiative Powered by MASB. Mr. Pace brings extensive experience from across the marketing spectrum—as a CMO, agency executive and leader of several industry associa-tions and standard-setting organizations.

aPPenDIXIX


ABOUT THE FORBES MARKETInG ACCOUnTABILITy InITIATIvE POWERED By MASB

Marketers are under increased pressure to prove the value of their marketing investments in a rapidly changing marketplace where customers are moving to digital channels and marketing

investment is rising to keep up. In 2018 marketers will spend over $1 trillion globally and over 10% of total sales for the average organization.

But despite years of vetting and advances in media measurement, analytics and marketing technology, most CMOs still struggle to quantify and communicate the value marketing creates to their leadership, peers and partners. Without common standards for measuring how marketing investments contribute to enterprise value, boards, CEOs, CFOs and CMOs are unable to make the critical trade-off, reallocation and risk investment deci-sions required to remain competitive in a dynamic and rapidly changing marketplace.

To help overcome the obstacles to growth and accountability, the Forbes CMO practice has joined forces with the Marketing Accountability Standards Board (MASB) to form the Forbes Marketing Accountability Initiative Powered by MASB.

The Forbes Marketing Accountability Initiative Powered by MASB is a member organization dedicated to proving the value of marketing and helping business leaders achieve a consensus on common-sense business practices for evaluating, measuring and growing the con-tribution of marketing to shareholder value, and informing critical growth investment decisions. Working in partner-ship with the MASB and a Marketing Executive Advisory Council, we seek to establish benchmarks, methods and standards to better connect marketing strategies, invest-ment and actions to business outcomes, growth and value creation. Our goal is to work with leading marketers, aca-demics, standard-setting bodies and experts to come up with practical solutions to the top measurement chal-lenges facing CMOs, including:

●● Maximizing the Return on Marketing Investments and Assets—To address the growing pressure to show financial returns on rising investments in marketing assets, new digital media, data, analytics and technology needed to compete for digitally enabled customers.

●● Supporting Strategic Trade-off Decisions With Facts and Data—To support the big strategic deci-sions—investment trade-offs, marketing resource reallocation, big bets on digital transformation and risk-reward decisions—CEOs and boards will need to make in order to generate results and stave off digital threats in a rapidly changing marketplace.

●● optimizing the Performance of an expanding Marketing Investment Portfolio—To address the mandate to manage and measure a broader investment portfolio, deeper in the sales funnel, with more touch points and higher degrees of business unit integration.

●● Closing the Marketing Performance Credibility Gap—By providing a common vocabulary, economics and standards to help CMOs collaborate more effec-tively with other business units, CEOs, CFOs and boards to work toward collective growth goals and transform marketing to adapt to a rapidly changing customer, tech-nology and competitive landscape.

We invite you to join our network of performance-oriented CMOs and collaborate with your peers in finance and analytics to establish a consensus and exter-nally validated framework for measuring, communicating and maximizing the contribution of marketing invest-ment to shareholder value and growth.

With access to research and best practices from leading CMOs, the Forbes CMO Practice provides an indepen-dent and objective forum to help marketing executives lead the transformation of their organizations. We offer a collaborative approach from insight to implementation including: CMO events, forums, best practices research sharing, and executive educational workshops and certi-fication programs.


To develop a complete picture of the most recent marketing accountability trends, performance levels, management practices and technology solutions, the Forbes CMO Practice undertook

parallel sets of original primary research in the first half of 2017. These included:

Quantitative research from a series of surveys with senior-level marketing executives to identify critical issues, trends, benchmarks and best practices for measuring and managing marketing performance at the executive and board level. The quantitative research includes a survey of 300 global marketing executives in May 2017, and an in-depth follow-on survey of 500 global marketing exec-utives in July of 2017 by Forbes Insights.

2 Qualitative interviews with 50 members of the Forbes Marketing Executive Council as well as interviews with over 50 subject matter experts from academic, mar-keting measurement, go-to-market strategy and corporate governance fields.

3 Secondary research from academic and com-mercial sources supports these findings, validating the marketing best practices, success stories, benchmarks and recommendations in this report as well as the technology solution analysis. The appendix documents all research sources.

METHODOLOGy

• Dana Anderson, CMO, MediaLink• Susan Avarde, Board, Brand Foundry Ventures• Edgar Baum, Chief Brand Economist, Strata Insights• Peter Bingaman, CMO North America, Mercer • Michelle Bottomley, CMO, Staples• Carter Burgess, Managing Director Board Practice,

RSR Partners• James Daniels, CEO, High Ridge Brands• David Edelman, CMO, Aetna• Frank Findley, Executive Director, MASB• Elissa Fink, CMO, Tableau• Julie Fleischer, VP Product Marketing,

Neustar MarketShare• Alan Gellman, CMO, Credible• Evan Greene, CMO, The Recording Academy• Michael Griffiths, VP Marketing,

Pitney Bowes Ecommerce• Kevin Hamilton, SVP of Marketing, Benefitfocus• Mike Hanssens, Distinguished Professor of

Marketing, UCLA Anderson School of Management• Peter Horst, Founder, CMO Inc• Chris Hummel, CMO, United Rentals• Tony Ialeggio, CMO, The Common Fund• Denise Karkos, CMO, TD Ameritrade

• Chris Kuist, SVP Research and Impact, IAB• Shannon LaPierre, VP Communications,

Stanley Black & Decker• Kay Lemon, Professor of Marketing, Boston College,

Executive Director at Marketing Science Institute• Andrew Lippman, VP Global Marketing, Lutron• Mike Marcellin, CMO, Juniper Networks• David Master, CMO, Janus Funds• Mark McKenna, CMO, Putnam Funds• Jim Meier, Senior Director Marketing Finance,

MillerCoors• Tony Pace, CEO, Marketing Accountability

Standards Board• Purush Papatla, Ph.D., Professor of Marketing,

University of Wisconsin Milwaukee• Amy Radin, Board Member, Association of

International CPAs (AICPA)• Julie Roehm, CMO, Abra Automotive• Shawn Sullivan, CMO, Boston Celtics• John Sviokla, CMO PwC• Marc Vermut, VP Analytics Neustar MarketShare• Thomas White, CMO, TIAA Institutional Services• Connie Weaver, CMO and EVP, TIAA-CREF

InTERvIEWS


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2. Ocean Tomo (2017) “2015 annual study of intangible asset market value,” available at: http://www.oceantomo.com/blog/2015/03-05-ocean-tomo-2015-intangible-asset-market-value/ (accessed 20th July, 2017).

3. Gartner Insights for Marketers (2016), “Customer Experience,” available at: https://www.gartner.com/marketing/customer-experience/ (accessed September 1, 2017).

4. Forbes CMO Practice (2017) “Marketing Accountability Report,” survey of 300 Executive Level Marketers from Global 5000 organizations, July 2017, available at: http://www.cmo-practice.forbes.com/about/ (accessed September 1, 2017).

5. Forbes CMO Practice Neustar Survey of 500 Executive Level Marketers from Global 5000 organizations, September 2017.

6. Data-Driven Marketing: Push Forward or Fall Behind Study, Survey of 200 North American marketing executives conducted in November and December 2016, Forbes Insights, available at: https://www.forbes.com/forbesinsights/oracle_data_cloud/index.html (accessed 20th July, 2017).

7. Kraft Heinz (2016) Annual Report, available at: http://ir.kraftheinzcompany.com/secfiling.cfm?filingID=1637459-16-100&CIK=1637459 (accessed 20th July, 2017).

8. Rogers, David L., The Digital Transformation Playbook: Rethink Your Business for the Digital Age, Columbia Business School Publishing, 2016, available at: https://cup.columbia.edu/book/the-digital-transformation-playbook/9780231175449

9. Farmer, Michael, Madison Avenue Manslaughter: An Inside View of Fee-Cutting Clients, Profit Hungry Owners and Declining Ad Agencies, LIH (2017), available at: http://www.madisonavenuemanslaughterbook.com (accessed 20th July, 2017).

10. IDC FutureScape: Dawn of the DX Economy and the Digital-Native Enterprise report, available at: http://www.idc.com/getdoc.jsp?containerId=prUS41888916 (accessed 20th July, 2017).

11. Diorio, Stephen, Disrupt or Be Disrupted Report, Profitable Channels, 2017, available at: http://profitablechannels.com (accessed 20th August, 2017).

12. Sorofman, J. (2017) “Gartner CMO Spending Survey 2016–2017,” available at: https://www.gartner.com/webinar/1871515 (accessed 20th July, 2017).

13. Zenith Media (2017) Zenith advertising 2017 expenditure forecast June 2017, available at: https://www.zenithmedia.com/wp-content/uploads/2017/03/Adspend-forecasts-June-2017-executive-summary.pdf (accessed 20th July, 2017).

14. Meeker M. (2017), Kleiner Perkins 2018 Internet Trends Report, available at: http://www.kpcb.com/internet-trends (accessed May 31, 2018).

15. Group M (2017), Group M Worldwide Media and Marketing Forecast Report. Available at www.groupm.com

16. Walker, K. (2017) “Cisco marketing velocity,” available at: http://www.channelpartnersonline.com/gallery/image-gallery-cisco-marketing-velocity/ (accessed 20th July, 2017).

17. The Importance of Growth in Creating Shareholder Value. BCG Compustat, Sources of shareholder return for top quartile performing S&P 500 companies 1987-2005, available at: https://www.bcg.com/documents/file14876.pdf (accessed 20th July, 2017).

18. Partnering in Performance: The CFO and the Chief Marketing Officer, EY 2016, survey of 652 CFOs, available at: http://www.ey.com/gl/en/issues/managing-finance/ey-cfo-program-partnering-for-performance-the-cfo-and-the-cmo (accessed July 20, 2017).

19. Forbes Insights 2016, Data-Driven Marketing: Push Forward or Fall Behind Study, Survey of 200 North American marketing executives conducted in November and December 2016 by Forbes Insights (accessed July 20, 2017).

20. Publish or Perish, Survey of 380 marketers by Forbes, 2016, available at: http://www.forbes.com/sites/forbesinsights/2016/02/11/how-marketers-are-driving-growth-through-personalized-content/#437a8e6b28cc (accessed July 20, 2017).

21. Brand Finance Top 100 Brands 2017, available at: http://fortune.com/2017/02/02/google-tops-apple-brand-value/

22. Spencer Stuart CMO Survey 2016, available at: https://www.spencerstuart.com/~/media/pdf%20files/research%20and%20insight%20pdfs/cmo-summit-survey-highlights-april-2016.pdf (accessed July 20, 2017).

23. Molson Coors Brewing Company 10K Annual Report, 2017, available at: https://seekingalpha.com/filing/3408063 (accessed August 20, 2017).

24. Marketing ROI in the Era of Big Data, Columbia Business School, 2012, survey of 283 executives by leading academics and the NY AMA (David Rogers), available at: https://www.iab.com/wp-content/uploads/2015/05/2012-BRITE-NYAMA-Marketing-ROI-Study.pdf

25. Why CMOs Never Last (Kimberly Whitler, Neil Morgan), July 2017, analysis of 300 recruiters, 170 job descriptions, 500 LinkedIn profiles

26. Fournaise Marketing Group Survey (2012), available at: https://www.fournaisegroup.com/ceos-do-not-trust-marketers/

27. 2015 Marketers’ Top Concerns Survey, ANA, available at: http://www.ana.net/content/show/id/33530

28. Brand Value as a Percentage of Marketing Capitalization. Applying the Brand Investment and Valuation Model. Analysis of Meier, Findley, Stewart. Marketing Accountability Standards Board. 2017.

29. Marketing’s Impact on Firm Value: Generalizations from a Meta-Analysis, AMA, Alexander Edeling and Marc Fischer, Journal of Marketing Research, 2016.

30. Marketing Science Institute (MSI), Empirical Realizations About Marketing Impact, Dominique Hanssens, 2016, available at: http://www.msi.org/books/empirical-generalizations-about-marketing-impact-2nd-ed (accessed 20th August, 2017).

31. The Marketing Accountability Standards Board CIR Initiative, 2018.

32. The State of Marketing Intelligence Report, Hanover Research Survey of 220 C-level marketing executives, 2018.

33. Sito Mobile, Client Case Study available at: http://www.sitomobile.com (accessed June 1, 2018).

34. Gartner, Predicts 2018: Analytics and BI Strategy, published 26 March 2018.

35. Forbes Insights, “The Power of Place: How Location Intelligence Reveals Opportunity in Big Data.”

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http://www.forbes.com/sites/forbesinsights/2016/02/11/how-marketers-are-driving-growth-through-personalized-content/#437a8e6b28cc



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Real-time maRketing accountability · 2 | Real-time maRketing accountability This analysis—with over 800 marketing leaders—by the Forbes Marketing Accountability Initiative and