The ANA’s study on “Elevating The Role of Marketing Procurement” from January of this year includes 113 responses that were studied from marketing procurement professionals in ANA member companies.
For those of you who didn’t read it, Cost reduction and cost avoidance came out as the two most used metrics for measuring success across companies in the US. Marketing procurement is a less well established function in the US compared with us Europeans. As a result, more tactical metrics such as cost reduction will come first and only once this area has been addressed can more strategic metrics such as Value Creation and Innovation be introduced (these last two metrics seem to be taking precedence in Europe or at least marketing procurement leaders are telling us this is so which is music to the ears of us “Innovative” vendors).
Emerging metrics in the US are Process Improvement, Innovation and Market Share increase. These are more challenging metrics to be sure but as the study says, they may offer more long-term success to an organisation.
Feedback on what metrics your organisation value most would be interesting so feel free to comment – in the meantime one final word from the study “Savings is not the goal; it’s the by-product”.