This document discusses the need for marketing accountability and outlines steps to implement it. It notes that few marketers define clear objectives for campaigns, spend time on media strategy, or generate positive ROI. Marketers are seen as unfocused and irresponsible by CEOs. The document advocates demonstrating financial ROI, being business savvy, setting KPIs, measuring performance, and learning skills to sustain accountability. It provides examples of companies with aligned marketing and sales outperforming others and lists 6 steps to implement accountability, including defining goals and metrics and setting up governance. The overall message is that accountability is needed for marketing to be an effective business driver.

1. Marketing Accountability
Ronald Velten
Director Marketing, Communication & Citizenship
Thursday April 14th 2011

2. Objectives of today
MY VIEW ON SOME FOOD TWO-WAY
ACCOUNTABILITY FOR THOUGHT DISCUSSION
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5. + +
BDR -award dinner
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13. + +
BDR -award dinner
=
An unprecedented opportunity to transform
the traditional marketing function into a
powerful business driver
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14. Accountability.
Is a behavioral thing with unprecedented
possibilities enabled by a smarter planet

15. RAISE YOUR HAND
If you think marketing has an accountability problem

16. Accountability to the Business: Making Money
Which % of Which % time do Sr. Which % of Sales Which % of TV
marketers define Marketers spend on Promotions are advertising
clear objectives for their media strategy Unprofitable? campaigns generate
their campaigns? (= largest budget negative ROI?
item)?
46% 2% 85% 82%
WARC, 2007 EMM, 2005 UCLA, 2004 Deutsche Bank, 2004

17. Over 80% of the ROI of any Marketing Strategy/Initiative is left to chance
 31% of projects are canceled before completion.
 53% of projects cost nearly double of original estimates.
 only 16% of projects come in time and budget.
Source: Management Centre Europe

20. Houston, we have a problem

21. Marketers are faddish, irresponsible, …
don’t think like business people …
more akin to a recalcitrant child …
McKinsey & Company, CEO/CMO Survey, 2005

22. Marketers:
Withhold research
Take credit for other’s work
Lack structure
Are always in meetings
Work from 10 to 4
Have long lunches
Unaccountable, untouchable
Seek quick promotions
Churn
Care about cars, stats and lunch
Use jargon
Slippery
Expensive
Cranfield University

24. Accountability,
Something we must take seriously
to sustain our function

25. Marketers say
“Our campaign generates the branding and
strong creative we need to differentiate
ourselves in the marketplace.”
The CEO/CFO wants to hear…
“Our analysis shows us that our € 3 million
campaign generated an incremental € 22.3 million
in revenue.
We can continue to generate ROI up to a € 4.5
million ad spend, generating an additional € 10.6
million in incremental revenue, at which point
broad media advertising becomes saturated for
our market.”
Source: CFO vs. CMO Smackdown, PMD Professional, 2005

26. Accountability.
It’s not about measuring as such, its about
our effectiveness and efficiency

27. And yes …..
You have to measure for it

28. OK …. And now

30. ATTITUDE
AMBITION
ACCOUNTABILITY
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31. The greatest danger
for most of us
is not that our aim
is too high and
we miss it, but
that it is too low and
we reach it
-
Michelangelo
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35. B.E. S.M.A.R.T

36. Marketers (and Agencies) need to show accountability &
effectiveness, not just measurement
Everything has a Key Performance Indicator (KPI)
(without the above, Marketing gets The ROI Question)

38. Creating a culture of accountability
Act as a proft center, not cost center
Be Outward-in oriented; Focus Your Business on the Customer
Be Trustworthy; Make Implementation Happen
Be Business Savvy; Demonstrate Financial ROI
Be Ambitious, and dare to admit failure
Start now, start small

39. Demonstrate Financial ROI
Marketing Accountability
BUDGET ALLOCATION MEASURE & PREDICT
Case: German insurance company Case: Indian Tea company, Greek Telco.

44. Make Implementation Happen
Make deadlines & align employees, agencies, vendors, retailers, …
Companies with aligned
marketing & sales
- grow 5.4 % faster
- are 38% better at closing
- loose 36% less of their customers
MarketingProfs Benchmark Report 2005

47. Marketeers and agencies need to become a Swiss Army Knife
• Planning confident • Implementation skilled
Creative thinkers
• Business savvy
• Optimization focused
• Analysis enthusiast

48. 6 steps to implement accountability
1. Define the end-goal
2. Define the in between milestones and KPIs
3. Set-up a measurement system
4. Set-up an governance structure
5. Sustain the momentum
6. Learn & Invest in skills

49. Ask yourself the following questions
Relevance
How do I add value to the business
Alignment
How do I proof that I am focused on
the success of the business, not the size
of my budget
Rigor
How do I get a fact-based, disciplined
approach to strategy and execution
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50. Visit us at TheCMOSite.com
Or contact me at

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