a colleague forward this newsletter? Sign
up to receive your own copy.
to Management review
of Marketplace Masters (PDF), September
Lowe spoke at the Legal Sales and Service
Organization Raindance Conference
in June 2005. See the LSSO
Web site for details on the conference.
Magazine article Perception is Reality
Information's Consultants News article
To Adjust To Marketplace Shifts Successfully
(paid subscription required, see July CN archives)
Marketplace Masters from Barnes
& Noble, Amazon, or your favorite online
bookseller. For bulk sales please contact CEO-READ.
is a monthly email publication on professional service
marketing from Expertise Marketing, LLC.
month’s newsletter, we introduced the topic
of measuring marketing initiatives and its challenges
for professional service marketers. This month, our
focus is on what firms decide to measure, and how they
I got started, it was tempting to call this month’s
article “ROI Measurement Shortcuts” to get
your attention. Indeed, when I talk to professional
service marketers, many tell me that they are looking
for a quick way to measure ROI. I would suggest the
issue is not really about speed or ease of measurement.
I think marketers are looking for measurement techniques
that can deliver tangible results to their internal
clients – the professionals of the firm.
another note, Patrick McKenna, co-author with David
Maister of First Among Equals, has reviewed
Marketplace Masters in the September 2005
issue of Consulting
Author, Marketplace Masters: How Professional Service
Firms Compete to Win
President, Expertise Marketing, LLC
Methods of Measuring Marketing ROI
people say that dreaming up creative, savvy marketing
campaigns is a right-brained activity – the very
essence of the “fun” stuff about marketing.
But professional service marketers know that they are
also expected to oversee the very left-brained activity
of measuring the ROI of their efforts. Practitioners
are applying growing pressure on marketers to provide
evidence that their marketing investment is worth it.
And, not only do marketers have to be accountable for
marketing expenditures, they also need to prove that
measurement itself is even feasible. No wonder that
getting early results from ROI measurement is so important!
"It’s clear that professional service
marketers are keen to prove that measurement itself
is a worthy activity. It’s also clear that
most have chosen to succeed at measuring mostly
tactical marketing activities."
imperative to get quick results influences the types
of initiatives that professional service marketers choose
to measure. It also influences the way they
sense is that, in general, marketers start out by focusing
on tactically well-defined internal and external marketing
initiatives so they can prove to their firm’s
internal clients that the very act of measurement is
a good idea. Then, as they develop more expertise in
measurement, they move on to measuring more strategic
of a recent survey
a recent presentation to an audience of professional
services marketers, I asked them to respond to a quick
survey about how they were using technology to measure
the effectiveness of their marketing programs. While
this is by no means a scientific sample, it still provides
some insight into what other firms are doing and may
get you thinking about where your firm is directing
its measurement efforts.
bulk of what people were measuring falls into what I
call the “internal” category – that
is, inside-the-firm initiatives that support a firm’s
endeavors to attract and retain clients. As you’ll
see below, many of these internal measurement initiatives
are made possible because of a firm’s technological
infrastructure (e.g., contacts management databases,
spreadsheets and intranets).
measurement initiative examples:
Relationship Management (CRM).
knowledge within the firm – some use internal
blogs to share best practices with colleagues.
business plans – some have automated systems
to track goals, activities, schedules, and responsible
parties. Management uses them for performance reviews.
a detailed database of the skills of everyone in the
the effectiveness of the sales process.
reports on each practice’s financial performance.
dossiers on client companies.
of the marketers in the audience indicated they use
a variety of technologies to measure the actual marketing
measurement initiative examples:
data by requiring clients and prospects to register
for webinars and events – this was one of the
more popular externally focused methods of measurement.
Some firms maintain copies of webinars permanently
on their Web sites so clients have 24 x 7 x 365 access,
as long as they register their data.
email lists – not only is it possible to track
who subscribes, you can track the open and click-through
rates of every email you send.
– available only to clients, these require a
analytics – firms can learn the most popular
items clients are viewing and downloading on their
Web site, what key phrases they entered into search
engines to find the firm, and what other Web sites
are driving the most traffic to the firm’s site.
course, professional service marketers are measuring
other tactically well-defined external initiatives,
even if they don’t use technology to do so. For
example, many are measuring prospect inquiries from
activities such as advertising, PR campaigns, firm-sponsored
conferences or speeches given by the practitioners.
You’ve measured the low-hanging fruit. Now what?
clear that professional service marketers are keen to
prove that measurement itself is a worthy activity.
It’s also clear that most have chosen to succeed
at measuring the low-hanging-fruit – and mostly
tactical – marketing activities like those cited
above. This is entirely understandable.
mostly to those professional service marketers who are
“breaking measurement ground” for future
marketers, I predict that professional firms will soon
begin to measure more strategically robust marketing
initiatives, such as the following:
- How are we doing at defining and identifying the
most strategically appropriate clients?
- Beyond the simple measures of revenue generated,
who are our most strategically important and loyal
clients? How are we doing at retaining them?
- How are we doing at increasing our revenues from
these most strategically important and loyal clients?
believe technology will indeed play a part in the heightened
profile and sophistication of marketing measurement.
For example, looking at the list above, it’s clear
that a firm’s financial systems, when linked to
its client relationship management platform, will help
the firm define and identify the most strategically
appropriate clients, and keep track of the firm’s
“share of wallet” with those clients. In
addition, data mining practices of client behaviors
will help reveal those clients who are true evangelists.
upcoming research study on measuring the ROI of marketing
in professional firms will shed further light on the
complex, strategic measurement techniques that firms
choose to use. In next month's issue, we’ll provide
specific details about how to participate.
now, marketers should aim to incrementally push the
envelope on their firms’ investment in measuring
marketing’s ROI. Start tactically, gain some early
measurement successes, and then urge your practitioners
to invest in more strategically meaningful techniques.
Lynch, who has led marketing in several offices
for large service firms, shared her thoughts
on last month’s article on measuring
you for your article on measuring marketing
ROI, Suzanne. In all three service firms where
I worked, I continually recommended we conduct
written and verbal client service surveys.
The opposition from some in leadership was
amazing, even though I showed them I had written
surveys that did not set up false expectations
or compromise confidentiality in any way.
leading consultants are afraid of what the
clients’ responses will be. (Not a good
sign!) At one large firm, around 1999, one
of the Midwest offices composed a survey that
involved having a consultant conduct the survey
one-on-one with a client with whom the consultant
was not involved. My office decided to try
it, but a decision was made to conduct the
survey for our large district, which included
several offices. The survey was well written
and gathered very good comments, but the process
for gathering statistics for a whole district
was the most laborious one I’d ever
seen, making the effort unusually time-consuming
and fraught with problems. Therefore, the
survey was discontinued. As a note-taker,
I accompanied several of our best consultants
on their interviews. The discourse was exceptional.
I would have loved to have used that instrument
again, but with a very simple methodology
for reporting and following up on the feed-back
just for my office.”
the confidential, web-based Marketplace Masters professional
service firm differentiation assessment test for
instant feedback on whether your firm is doing differentiation
feedback is important to us. Please contact
us with your comments and questions.
Marketing, LLC All Rights Reserved