Percent of Executives Unable to Measure Marketing Campaign Return on
Investment, Says Accenture Study
NEW YORK, November 7, 2001 – Nearly
three quarters of the marketing executives in the U.S. and the U.K. say that
their company is unable to measure a marketing campaign’s Return On
Investment (ROI), according to a study released today by Accenture.
In fact, 70 percent of these executives say they
continue to have trouble capturing the attention of customers and 65 percent
are struggling to integrate and share customer data across the organization
(Web, call centers, etc.) in order to develop a single view of the customer.
These are just some of the obstacles facing marketing
executives and uncovered by the study, based on interviews conducted with
175 marketing heads in the U.S. and U.K. earlier this year. Other challenges
frequently encountered by a large percentage of marketers include measuring
the return on their marketing investments due to shortcomings in a company’s
ability to integrate its sales, marketing and customer service tools.
The study also discovered that a majority (58 percent)
of marketing executives frequently struggle to shorten the cycle time it
takes to create and launch a marketing campaign. Nearly 20 percent of
companies participating in the survey take more than four months to develop
and launch a campaign, and 33 percent take between two and four months. The
average company’s campaign cycle time is approximately 2.5 months.
In addition to uncovering marketing’s principal
challenges, the study sheds light on what marketing heads consider their
most pressing needs. These include access to more accurate and fresher data
(68 percent), integration between the numerous customer touch points (67
percent), better overall customer strategy (67 percent) and more
collaboration, both within the function and with the sales and customer
service departments (59 percent).
“Customers are becoming less loyal to brands. They use
new sources of information to build impressions and make decisions in buying
a product or service. Yet marketing executives are not equipped with the
tools they need to keep up with the changing customer expectations, achieve
greater share of wallet and maximize the lifetime value of customers,” said
Pat O’Halloran, partner at Accenture’s Customer Relationship Management
practice. “Marketing executives need the right information at the right time
to be more responsive to ever changing customer behavior,” added O’Halloran.
While input from interviewees was largely consistent
between those in the U.S. and the U.K., there were some differences worth
noting. For instance, establishing a single view of the customer and
measuring campaign ROI were viewed as much more of a problem in the U.K.
than in the U.S.
While a virtually equal percentage of U.S. and U.K.
respondents noted taking more than two months to create and execute a
marketing campaign, 25 percent of those in the U.S. said they take more than
four months to do so compared with just 9 percent of their British
counterparts. And, a far greater percentage of U.K. respondents than those
in the U.S. cited the need for more accurate, fresher data and stronger
integration between customer touch points: 79 percent v. 60 percent, and 75
percent v. 61 percent, respectively.
About the Study
In late 2001, Accenture completed an extensive study on marketing
performance and campaign effectiveness in companies in the United States and
the United Kingdom. Fifteen-minute telephone interviews were conducted with
175 senior marketing executives from companies in a range of industries,
including consumer products manufacturers, retailers, automotive retail and
manufacturing, utilities, and financial institutions. The majority of the
participating companies have more than 5,000 employees.
Marketing ROI Related Books
New Study Finds Marketing Budgets Up for 2004 and Important Links
Between Marketing Accountability, Perceptions and Budgets
Blackfriars Communications, Inc. has established the Blackfriars
Marketing Index (TM), a quarterly measure of corporate marketing demand
and spending. Their initial study has found that annual marketing
budgets for businesses are up 8.9 percent over 2003. Perhaps most
importantly, the study revealed a strong correlation between marketing
measurement practices, the corporate perception of marketing and the
marketing budget. Fifty-seven percent of the companies surveyed measured
the results of their marketing efforts in some manner (although this was
defined fairly broadly). Firms that measured their results had marketing
budget increases nearly twice that of companies that did not measure
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