About 3 in 4 CEOs globally say they want marketers to become fully focused on ROI, per results from a Fournaise Marketing Group survey released in July 2012. A similar proportion think marketers misunderstand the real meaning of the words “results,” “ROI” and “performance.”The upshot of this is that 8 in 10 CEOs believe marketers are disconnected from companies’ financial realities, and as a result, the same proportion claim they do not trust and are not very impressed by the work done by marketers.
CEOs’ concerns regarding marketers’ focus on ROI finds some basis in marketers’ own perceptions. According to a March 2012 report from Columbia University’s Center on Global Brand Leadership and the New York American Marketing Association (NYAMA), 57% of senior marketers say they don’t base their marketing budgets on any ROI analysis. In fact, roughly two-thirds report establishing their marketing budgets in part on historical spending, and 28% on gut instincts. And when looking at specific spending decisions, 21% say they use financial metrics for little or none of the decisions, while 7% are making most or all of the decisions absent any metrics at all.
CEOs Want Attention Paid to Marketing KPIs
Data from the Fournaise Marketing Group’s “2012 Global Marketing Effectiveness Program” indicates that 82% of B2C CEOs want B2C “ROI marketers” (100% focused on ROI) to focus on tracking, reporting, and enhancing the following key performance indicators: sell-in; sell-out; market share; and marketing ROI (which is defined as the correlation between marketing spending and the gross profit generated from it.)
Similarly, 85% of B2B CEOs (and B2C CEOs in prospect-driven industries) want ROI marketers to focus on the same metrics, as well as the business potential generated by marketing.
Read the ArticleAbout the Data: The Fournaise Marketing Group data is based on interviews with more than 1,200 large corporation and SMB CEOs and decision-makers in North America, Europe, Asia, and Australia.
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