While marketing has developed numerous performance measures, many marketing metrics are NOT explicitly linked to financial performance in predictable ways. Cash flow both short-term and over time is the ultimate marketing metric to which all activities of a business enterprise, including marketing, should be causally linked through the validation of intermediate marketing measures.
MASB’s Marketing Metric Accountability Protocol (MMAP) is a formal process for connecting marketing activities to the financial performance of the firm and certifying the validity of marketing metrics.
10 Characteristics of an Ideal Marketing Metric
MMAP includes the conceptual linking of marketing activities to intermediate marketing outcome metrics to cash drivers of the business. In addition, the process examines how each metric meets the 10 validation & causality characteristics of an ideal metric:
- Relevant – addresses specific (pending) action
- Predictive – accurately predicts outcome of (pending) action
- Objective – not subject to personal interpretation
- Calibrated – means the same across conditions & cultures
- Reliable – dependable & stable over time
- Sensitive – identifies meaningful differences in outcomes
- Simple – uncomplicated meaning & implications clear
- Causal – course of action leads to improvement
- Transparent – subject to independent audit
- Quality Assured – formal/on-going processes to assure 1-9
Marketing Metric Certification
Because MMAP identifies both problems and opportunities, the process often results in a metric’s improvement. MASB Metric Certification has been earned by some of the top marketing measurement firms in the industry. See MMAP Metric Catalog.
For more information or to schedule your MMAP process, contact Frank Findley, [email protected].