LONDON: Businesses with a strong marketing effectiveness culture are fitter and better able to deliver targets, according to a new study which highlights five behaviours that successful organisations are practising.

The Culture First report from the Institute of Practitioners in Advertising (IPA), launched as part of the body’s annual Effectiveness Week, examined the current behaviours of more than 20 prominent brands, including John Lewis, Unilever, TfL and L’Oréal, on their journey to understanding marketing effectiveness.

It reported that significant additional resource and focus have been invested by these organisations into better understanding which marketing levers are driving their desired business outcomes.

And it identified five behaviours and practices that are prevalent in the more successful effectiveness cultures. It further asserted that agencies which put effectiveness at the heart of day-to-day operations can drive positive improvements for their clients’ and their own businesses.

These include collaboration between finance and marketing teams, particularly regarding decision-making on marketing investment, and, allied to that, a common understanding of the language being used.

“If the marketing industry wants to increase the credibility and understanding of its brand health and customer metrics among financial teams, it should consider changing its language to reflect the commercial benefit it drives”, the study advised.

Internal process has to be addressed, with effectiveness a consideration from the start, alongside a shared view of customer and measurement priorities, being consistent with the metrics that matter and ensuring a meaningful feedback and learning cycle.

Additionally, the more advanced companies are now including both short and long-term metrics in their models; datasets are being integrated and there is a shift from a reporting culture to a learning culture.

Finally, skills development in effectiveness is an essential requirement across the marketing industry,

At Telefónica, marketing effectiveness is managed as a separate department reporting into Marketing, according to Sandra Fazackerley, Director of Customer Data, Insight & Experience, Telefonica UK and member of the IPA EffWeek Client Advisory Board.

“This gives us autonomy and independence but enough visibility and connection to day-to-day practice to provide sound stewardship to the business,” she explained.

“Our aim in marketing effectiveness is to provide the evidence the organisation needs to switch from a reporting culture to a learning culture,” she added.

Sourced from IPA; additional content by WARC staff