text: marketing performance measurement and management marketing performance measurement and management ( ) is the systematic management of marketing resources and processes to achieve measurable gain in return on investment and efficiency , while maintaining quality in customer experience . marketing performance management is a central facet of the marketing operations function within marketing departments . marketing performance management relies on a set of measurable performance standards , a pointed focus on outcomes , and clear lines of accountability ( i.e. roles and consequences ) . marketing performance management is based on six success factors : 1 ) alignment , 2 ) accountability , 3 ) analytics , 4 ) automation , 5 ) alliances , and 6 ) assessment . alignment alignment of marketing activities and investments to business outcomes occurs when a marketing organization establishes a direct line of sight between marketing activities , investments and business outcomes . alignment begins with customer insights , to ensure that the marketing performance management approach will be rewarded by the marketplace . secondly , alignment with enterprise objectives ensures that marketing efforts are in sync with what the company is striving to achieve . enterprise goals can be cascaded to the business unit level and then to the department level to maintain consistency and drive synergy both horizontally and vertically . marketing objectives that are developed this way can be cascaded to all of the marketing sub - functions for alignment . accountability accountability is the monitoring and measurement of the commitment a person , group , or organization makes to deliver specific , defined results relating to the enterprise ’ s financial and strategic objectives . selecting the right metrics , integrating performance targets , and producing actionable dashboards are all integral to accountability . accountability encompasses making a commitment to a particular action , accepting responsibility for completing that action , and then disclosing how well you performed against your commitment . accountability requires commitments , metrics , and consequences ( positive and negative ) . metrics performance standards are called metrics , which are the cornerstone of accountability . marketing metrics encompass activity , output , operational , and outcome categories : " activity metrics " relate to the number of things done in a process , such as the number of new blog posts or the number of events . " output metrics " relate to the result of a process , such as website traffic , media mentions , or event participants . " operational metrics " relate to the efficiency and effectiveness of a process , such as cost per lead , revenue per customer , revenue per sales representative , cost per customer , or leads per sales representative . " outcome metrics " relate to the consequences of a process ’ outcomes , such as revenue , profit , win rate , pipeline contribution , share of preference , share of wallet , or share of market . indicators to manage causes and effects , managers identify leading indicators and lagging indicators : " leading indicators " are metrics that a manager can monitor before stakeholders see results . they are in - process metrics and process - input metrics that serve as warning signals of output , operational , and outcome metrics . within a workflow diagram , the questions represented by a diamond are typical sources of leading indicators . they indicate whether there will be re - work , scrap , waste , or delays in what the process is meant to achieve . they are actionable and predictive . by monitoring leading indicators , managers can intervene to attain higher performance . " lagging indicators " are metrics that a manager ’ s stakeholders see . they are post - process metrics ( i.e. output , operational , or outcome metrics ) . lagging indicators are important for seeing the big picture , but they are not actionable in and of themselves . reporting marketing performance can be reported in a wide variety of formats ( verbal , pictorial , graphic , tabular , text , dashboard ) , which are used for accountability and decision - making . ideally , reports revisit past commitments or forecasts , to enable learning and refinements for future performance . are particularly important in marketing performance management , visually displaying multiple metrics on a single screen or page . this allows managers to monitor performance at a glance , and to be alerted when performance varies significantly above or below expected levels . ideally , dashboards show the relationships between leading and lagging indicators . this can empower people at every managerial level . analytics analytics seeks to identify patterns in data by organizing it and applying mathematics , statistics , or algorithms to it . analytics foster fact - based , data - driven customer , product , market and performance decisions and develop models to support scenario analysis and predict potential outcomes . marketing analytics can be used to create models to help understand , monitor , and predict customer behavior , such as likelihood to defect or predisposition to purchase . it can help managers quantify performance , make and optimize channel and mix decisions , understand the impact of a campaign on a sales list , and create many other types of insights . data availability is accelerating at an unprecedented pace , and analytics technologies can help marketers quickly synthesize data from various sources . analytics can harness the power of data by converting it to actionable information and models that guide strategic investments and decisions that drive marketing performance . automation automation of marketing processes reduces manual labor , errors , and inconsistency . it enables timely , personalized messaging to customers , prospects , and other stakeholders . automation provides infrastructure for marketing performance management . it spans marketing resource management , campaign automation , business intelligence , data management , reporting platforms , and scenario analysis tools . alliances alliances are arrangements between companies to create additional value together . distributors , resellers , marketing agencies , and other companies may co - develop , co - promote , and / or co - deliver various parts of the marketing mix ( product , price , promotion , placement ) . marketing performance management requires information transparency , clear roles , and smooth between alliance members , both externally and internally . a spirit of alliance among the work groups across the marketing organization , and with other support functions and business units shapes the ecosystem that nurtures or hinders marketing performance . collaboration cross - functionally is essential to marketing efficiency and effectiveness . assessment assessment is the evaluation of strengths , weaknesses , and opportunities in marketing performance management . assessment is typically conducted by benchmarking other organizations or comparing performance to a standard . ideally , assessment is supported by a culture of genuine concern , dedication , and willingness among management and employees to continually improve performance .