Marketing During the Recession, Golden Rule #2: Define Clear and Measurable KPIs that Link to ROI

Defining marketing KPIs is not always as simple as it sounds. Strong marketing KPIs should be 5 to 10 maximum (that is what the Key stands for), and should link to ROI (that is what the Performance Indicator stands for). Defining few but clearly ROI driven KPIs implies having a clear strategic vision of how marketing contributes to sales and bottom line. As an example, Awareness (% of target that know the brand) is clearly measurable but has no direct link to sales or costs, and therefore to ROI. Relationship (% of target that has a relationship with the brand) is also measurable and has a direct impact on sales and costs. For a specific brand, consumers that are in the Relationship mode cost less to talk to (25 to 30% less) and buy more products (25% to 35%). Therefore, Relationship is a KPI that links to ROI. Setting the appropriate set of KPIs and building the most efficient tracking tools to measure them across all actions is the key to measurable and manageable marketing, and therefore to strategically manage your budgets and efforts. This has become achievable in the past few years for all marketing and communications fields, but has become an urgent imperative during this crisis.

For further information about KPIs elaboration and the Engagement Index, please refer to the Engagement Index & ISARA presentation.

Pierre Santamaria - OTO Research General Manager
After starting at the BNP as a financial controller from 1991 to 1993, Pierre Santamaria (ESCP / Dauphine) joined Altist, a management consulting firm, where he designed and managed the new technology activities until 1998. From 1999 to 2006, he founded(is this right?) the Columbus Consulting Firm, where he ran many projects for major clients such as Nouvelles Frontières, BRED, Société Générale, France Telecom and EDF. In 2007, he was appointed by Rafi Haladjian General Manager of Ozone, the Wi-Fi metropolitan operator to manage the company’s merger with Neuf Telecom. In 2007 he became General Manager of OTO Research, the new generation research Institute of FullSIX Group, where he is in charge with the development of tools, services and ad hoc solutions, aimed at approaching the market from an innovative point of view.