DAC’s Measurement Definitions ‘Cheat Sheet’

. August 8, 2018 . 0 Comments

Speaking a common marketing measurement “language” is an important success ingredient for any analytics program. If team members use different working definitions of such things as metrics, marketing ROI, customer identity or analytics in general, for that matter, it can lead to confusion, missed opportunities and diminished results.

Below is a short list of key definitions (organized alphabetically) related to marketing measurement. This list will grow as we add more. Leave a comment listing any terms you’d like to see DAC define.

Accountability (in Marketing): Responsibility for managing marketing activities to achieve measured results and improved outcomes while contributing to long-term brand growth and enterprise value.

Analytics (For Marketing): The statistical process of transforming data into insights for making better decisions.

Analytics Culture: A shared mentality which recognizes that broadly available data-driven analytics and insights are the catalyst for more effective decision-making, where individuals consistently use analytics to evaluate business outcomes and quantify the results of marketing activities via measurement and testing.

Audience: Any group of potential or existing customers identified as the intended recipients or “targets” for a given advertisement or marketing message based on their likelihood to respond.

Customer Identity: The ability to verifiably recognize individual customers across all points of engagement, including marketing, sales and contact channels, and across devices by using multiple data points to create a single view of those customers. A critical requirement in order to develop normalized and complete customer journeys for analysis, measurement and insights. 

Data: Factual information derived from various primary and secondary sources, including quantitative and qualitative values and variables, that can be collected, analyzed and used as a basis for calculation and decision making.

Marketing Performance Measurement: Systematic analysis of marketing processes and performance with the goal of optimizing marketing effectiveness, improving customer experience and growing revenue.

Marketing Mix Modeling (MMM): A statistical analysis of aggregate sales, marketing, and business drivers data that quantifies the impact of different marketing channels and tactics (the marketing mix) on financial outcomes, resulting in insights and recommendations that can be used to optimize marketing investment allocations and predict future outcomes

Metrics: A set of measureable performance standards that may be used as the basis for determining effectiveness and accountability.

Multi-Channel Attribution / Multi-Touch Attribution (MTA): The statistical process that determines and assigns credit for revenue and other converting events to the individual online and offline addressable marketing touches across the entire consumer journey, from awareness to purchase.

People-Based Marketing: A precision marketing approach centered around using data to persistently identify and connect with the right people (individuals), at the right time, in the right place with the right message rather than marketing to devices.

Predictive Analytics: The use of data, statistical algorithms and other analytical techniques, based on historical performance, to forecast likely future outcomes based on forward-looking assumptions.

Return on Investment (ROI or MROI): The financial value attributable to a specific set of marketing initiatives (net of marketing spend), divided by the marketing ‘invested’ or risked for that set of initiatives.

Unified Analytics: A new marketing measurement standard that integrates multiple statistical techniques, such as marketing mix modeling and multi-channel attribution, in order to accurately and consistently measure the financial impact of marketing investments at all levels of granularity and across all dimensions entire value and identify the best ways to optimize customer interactions.

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Category: Articles, Basics, Definitions, Resources

About the Author ()

Daniel Kehrer is Executive Editor of the ANA Data Analytics Center (DAC), a leading voice of thought leadership and education in marketing measurement, data and analytics. He is also the Founder of BizBest Media Corp. and previously headed marketing at MarketShare LLC, an advanced marketing analytics technology company.

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