Gartnerfor

MarketersReframing

MultichannelMarketing

PerformanceMeasurement2023

Multichannel

Marketing

Survey1?2023Gartner,Inc.and/oritsa?iliates.Allrightsreserved.CM_GBS_2226056The2023

Gartner

MultichannelMarketing

Survey

reveals

thatperformance

measurement

isa

dif?cultexercise

for

mostdigitalmarketing

leaders.Deeperanalysissuggests

thata

less

siloedapproach,

supported

by

three

orfour

metrictypes,

can

helpyou

betterassess

multichannelmarketing’s

impact.Data

SnapshotFigure

1:

Organizations

Struggle

to

Identify

Metrics

That

Demonstrate

MultichannelMarketing’s

E?ectivenessStronglyDisagreeSomewhatDisagreeNeitherAgreenorDisagreeSomewhatAgreeStronglyAgree3%We

struggletoidentifyacommonsetofmetricstosuccessfullymeasuremultichannelmarketinge?ectiveness8%

10%50%30%80%3%We

struggletoidentifyacommonsetofmethodstosuccessfullyattributemultichannelmarketinge?ectiveness7%

10%49%31%0%50%100%n=397

multichannelmarketingleadersNote:Percentagesmaynottotal100duetorounding.Source:Gartner2?2023Gartner,Inc.and/oritsa?iliates.Allrightsreserved.CM_GBS_2226056Data

InsightsThisresearch

ispart

ofa

series

of

key

?ndingsfrom

theGartner

2023

MultichannelMarketing

Survey.Additional

insights

canbefound

inthefollowing

research:?

2023

Multichannel

Marketing

Survey:

How

theNumberof

Marketing

ChannelsImpactsSuccess?

2023

Multichannel

Marketing

Survey:

How

Proactive

PlansHelpLeaders

DuringChallengingTimes?

2023

Multichannel

Marketing

Survey:

Marketing’s

Role

inRoute-to-Market

ExecutionMultichannelmarketing’s

rapid

evolution

hasproved

to

bebotha

source

of

excitementandheadache

fordigital

marketing

leaders

andmarketers.

Excitement—

becauseithasprovided

newopportunities

to

reach

andengagecustomers,

through

evermore

channels,andnewer

content

formats.Headache

—

becausemeasuringtheimpactof

these,

whetherinterms

of

theuserexperience

andthecommercial

returns

orROI,

istough

andgettingtougher.

Emerging

channelsandevolving

customer

behaviors

combinewitholderandmore

persistent

challengingquestionssuchas:How

dowe

selectthemost

relevantmetrictypes?

How

many

metricsshouldwe

use?

How

dowe

connectthedots

betweenallourmultichannelmarketingactivities

andbusiness

performance?To

make

better

senseof

multichannelmarketing’s

e?ectiveness

andmore

con?dentlycommunicateits

impactonmarketing

channelsandcontent

performance,

factor

inthefollowing

insights

from

the2023Gartner

MultichannelMarketing

Survey:?

The

majority

of

organizations

struggle

with

multichannel

performance

measurement.Eightypercent

of

allsurveyed

participantssay

they

struggletoidentify

a

commonsetofmetricsandmethodsto

measure

andattribute

multichannelmarketing’s

e?ectiveness(see

Figure

1).Dif?cultymanaginginternal

consensusandaligningKPIswithbusinessoutcomeswere

two

reasons

cited

for

thisstruggle.?

Organizations

applying

a

holistic

approach

to

multichannel

performancemeasurement

struggle

significantly

less.

Eighty-six

percent

of

organizations

usingamore

siloedapproach

to

performance

measurement

(i.e.,

thatmeasure

individualchannele?ectiveness),

say

they

struggletoidentify

a

commonsetof

metricsto

successfullymeasure

multichannelmarketing

e?ectiveness,

compared

to

67%

of

organizationsusinga

more

holisticapproach

(i.e.,

organizations

thatmeasure

channele?ectivenessholisticallyacross

allchannels).This?ndingisconsistent

withthebroader

survey

analysisthatreveals

how

organizations

are

adoptingeithera

more

siloedora

more

holisticstrategic

approach

to

multichannelmarketing

asa

whole.

Thesurvey

alsorevealsa

sharpcontrast

inperformance

between

thetwo.3?2023Gartner,Inc.and/oritsa?iliates.Allrightsreserved.CM_GBS_2226056?

Organizations

prioritize

transactional

and

competitive

metric

types.

Thetwo

mostwidelyusedtypes

of

metricsare

transactional(these

includeindividualKPIssuchassales,

revenue

andconversion

rates)

andcompetitiveones

(these

includemarket

share,voice

share

andwallet

share).

Theothertypes

of

metricsfrequently

usedare

(ranked

inorder

of

most

toleast

used):–

Engagement/return

on

engagement

metrics

(e.g.,

socialinteractions,

emailopenrates

andclickthroughs)–

Perceptual

metrics

(e.g.,

customer

satisfaction

score,

customer

e?ort

score,

NetPromoter

Score)–

Pipeline

metrics

(e.g.,lead

quality,

timeto

close,

cost

perlead

andwinrate)–

Relationship

metrics

(e.g.,

customer

lifetime

value;

LTV:CAC

ratio)–

Awareness

metrics

(e.g.,

aidedawareness,

unaidedawareness

andearned

reach)?

Less

is

more

when

it

comes

to

metric

types

that

measure

multichannel

marketingimpact.

Deeperanalysissuggeststhere

isa

“sweet

spot”to

thenumberof

metrictypesusedto

measure

andunderstandmultichannelmarketing’s

impact.Themajorityoforganizations

(61%)

usingthree

to

four

metrictypes

reported

exceeding

theirmarketingperformance

objectives.

Onaverage,

thisis24%

more

thanorganizations

using?ve

ormore

metrictypes,

and49%

more

thanthoseusingfewer

(two

orless)

metrictypes(see

Figure

2).This?ndinghastwo

implications.First,

limitingthenumberof

metrictypes

used(andthus,

thenumberof

overall

individualKPIs)helpsmarketing’s

holisticunderstandingandassessmentof

whatmultichannelmarketing

candoto

meetcustomer

needsandultimatelysatisfy

business

outcomes.Second,thatfewer

butrelevant

metrictypes

alsohelpsteamsbetter

communicate

marketing’s

impactinternally—

especially

withstakeholders

seatedoutsideof

marketing.Figure

2:

The

Sweet

Spot

—

Three

to

Four

Metric

Types70%6611%%4499%%411%%35%0%0-2

Types

Utilized3-4

Types

Utilized5

orMoreTypes

Utilizedn=397

multichannelmarketingleaders,basesvarybysegementSource:Gartner4?2023Gartner,Inc.and/oritsa?iliates.Allrightsreserved.CM_GBS_2226056What

Yo

u

Need

to

KnowThe?ndingsandanalysisof

the2023Gartner

MultichannelMarketing

Survey

combineinto

onefundamentalinsight:A

more

holisticapproach

(i.e.,measuring

channele?ectiveness

holisticallyacross

allchannels)supportedbya

measurement

strategyfocused

onjustthree

to

four

metrictypes

willhelporganizations

make

better

senseof

multichannel’s

impact.Asa

result,

take

thefollowing

steps

to

applythisandhelpmake

thenecessary

shift:?

Simplify

your

approach

to

identifying

the

most

relevant

multichannel

KPIs

thatclearly

connect

to

business

outcomes.

Applyinga

return

onobjectives

approach

toperformance

measurement

isa

quickbute?ective

methodofidentifying

metricsthatclearly

connectto

broaderbusiness

goals(see

TheFinancialServices

CMO’s

Guide

toBuilding

Strategic

PlansThatProve

Marketing’s

Impact).However,

itisalsopossibletoapplya

more

advanced

method,butthisdependsontheorganizations’

go-to-marketmodel(see

WhatCMOsNeedto

Know

AboutMarketing

Attribution,

Measurement

andTesting

forfurtherguidance).?

Limit

your

mix

of

metric

types.

Use

of

metrictypes

shouldstrictlybelimited

toamaximumof

four

sothatmarketing

teamscantake

actionfrom

thedata.

Althoughtransactional

metricsarenecessary

to

demonstrate

performance,

othermetricstypesare

neededto

providea

more

holisticview

of

marketing’s

impact(see

Tool:

PrioritizeMarketing

Metricsfor

Your

Dashboard).?

Plan

to

build

consensus

on

metrics

incrementally,

starting

withotherfunctionsdirectly

involved

inmultichannelmarketing

andmoving

quicklyto

include?nancefor

theattribution

to

revenue.

Consensus-buildingtakes

time,

collaboration

andsocialization.Usea

“thinkbig,start

smallandlearn

fast”

approach

by

engagingonlyoneortwoadditionalgroups

ateach

step,

andadjustingyour

approach

to

engagementandcommunicationthroughout

theprocess.

Insomecases,

itwillbemore

usefulto

solicitinput(i.e.,start

by

askingwhatthestakeholder

thinks

isimportant;

don’tstart

by

showingthelistof

recommended

metrics).Inothercases,

itwillbemoresuccessful

by

askingforfeedbackafter

explaining

therecommendations

andapproach.

Expectthisprocess

tooccurover

months,

notweeks,

inmost

organizations.5?2023Gartner,Inc.and/oritsa?iliates.Allrightsreserved.CM_GBS_2226056Evidence2023Gartner

MultichannelMarketing

Survey:

Thisstudy

was

conducted

to

understandbest

practices

to

maximize

multichannelmarketing

investments

inresponse

to

evolvingcustomer

journeys

ina

?uidmarketing

environment.

Theresearch

was

conducted

onlinefrom

November

through

December2022.

Intotal,397

respondents

were

surveyed

intheirnativelanguages

acrossNorth

America(n=

201),Western

Europe

(n=

161)

andtheNordics(n=

35).

Qualifying

organizations

reported

enterprisewide

annualrevenue

for

?scal2021of

atleast

$100million,with83%

of

therespondents

comingfrom

organizations

with$1billionormore

inannualrevenue.

Therespondents

camefroma

variety

of

industries:?nancialservices

(n=

61),

manufacturing

(n=

58),

consumerproducts

(n=

46),

media(n=33),

retail

(n=

45),healthcare

(n=

44),

pharmaceuticals(n=35),

ITandbusiness

services

(n=30),andtravel

andhospitality(n=

45).Allrespondents

were

seniorleadersthatmanagemultiplemarketing

channels,and/orwere

responsible

for

theexecution

of

theirorganization’s

multichannelmarketing

strategy.Eighty-?ve

percent

of

respondents

were

alignedto

themarketing

function,9%

to

brandmanagement,7%tosales

orotherbusinessunits.Disclaimer:

Theresults

of

thissurvey

donotrepresent

global?ndingsorthemarket

asawhole,

butre?ect

thesentiments

of

therespondents

andcompanies

surveyed.6?2023Gartner,Inc.and/oritsa?iliates.Allrightsreserved.CM_GBS_2226056Actionable,

objective

insightPosition

your

marketing

organization

for

success.Explore

theseadditional

complimentary

resources

and

tools

for

marketing

leaders:WebinarResearchRethink

Your

MultichannelMarketing

Strategy

To

BeBest-in-classDigital

IQ:Email

MarketingBenchmarksDiscovertrendsandbest

practicestoachieveemailmarketingexcellenceanddrivebusiness

results.Determinethemoste?ectivestrategicapproachtomultichannelmarketing.Watch

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