Definitive guide-to-marketing-metrics-marketing-analytics
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With a dashboard of marketing metrics and analytics, B2B marketers can measure marketing's link to revenues and profits.

With a dashboard of marketing metrics and analytics, B2B marketers can measure marketing's link to revenues and profits.

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Definitive guide-to-marketing-metrics-marketing-analytics Definitive guide-to-marketing-metrics-marketing-analytics Presentation Transcript

  • The      marketo.com
  •        ©  2011  Marketo,  Inc.  All  rights  reserved. 2
  •     This  guide  will  help  you  do  just  that.  We    According  to  the  Lenskold  Group’s  2010  B2B   5 QUESTIONS TO GUIDE YOUR MEASUREMENT INSIGHT  “I  Don’t  Know.” investment  and  how  will  you  connect  your  increase  could  do  for  their  companies.     cultural  changes  need  to  occur  within  my   4.     Which  are  appropriate  targets  for  improving     with  regard  to  your  knowledge  of  the  return           ©  2011  Marketo,  Inc.  All  rights  reserved.
  • Part  1:     ©  2011  Marketo,  Inc.  All  rights  reserved.
  • CUT PROGRAMS TO BUILD CREDIBILITYsolely  to  support  sales,  or  that  it  is  an  arts  and  deserves.   demonstrate  a  strong  sense  that  you  are  managing  a   make  hard  choices  with  company  money.   Seventy-six percent (76%) of B2B marketing professionals agreeof  views.     or strongly agree that their “ability to track marketing ROI gives   the  right  revenue  metrics.   marketing more respect.” Source: Forrester Research   ©  2011  Marketo,  Inc.  All  rights  reserved.
  •     “Marketing has always been a grueling and competitive sport – not unlike running a marathon. With the changes in the buying process,   in media and technology, and managing expectations, it’s like running a marathon as the ground shifts beneath your feet. What To  formulate  accurate  forecasts,  sales     was already difficult is becoming increasingly difficult. If you’re going to do it without measurement, it’s like running a marathon, in an earthquake, blindfolded.” David Raab, Author, Winning thefrom  making  the  right  strategic  investments  to   Marketing Measurement Marathon it  needs  to  deliver  the  results  it  has  promised.   This  requires  knowing  what  it  will  take  –  in  important  thing  marketers  can  do  to  change   they  are  ready  to  talk  with  sales.  In  the  same  way  that  you  can’t  drive  quickly   Marketers  who  use  this  type  of  rigorous  if  you  rely  only  on  your  rear-­‐view  mirror,  you   in  terms  of  investments,  not  costs,  and  are  report  what  has  happened  in  the  past.  The  terms  of  leads,  pipeline,  and  revenue. ©  2011  Marketo,  Inc.  All  rights  reserved.
  •  WHY NOW IS THE TIME FORMARKETING METRICS But  with  great  power  comes  great   20%and  sales  teams  must  work  –  and  work   47%together  –  to  drive  revenue.    Because  they  have  ready  access  to   deliver  value  in  line  with  company  revenue      part  of  the  company’s  revenue  engine.   in  their  companies.   35%“70% of the buying process is now complete by the time a prospect is ready to engage with sales.” SiriusDecisions, Inc.   ©  2011  Marketo,  Inc.  All  rights  reserved.
  •  THE 5 STAGES OF MARKETING ACCOUNTABILITY   producing  asset.   remains  hidden.  Basic  metrics  such  as  lead   source  tracking  and  cost-­‐per-­‐lead  are  put  in   in  front  of  the  revenue  pipeline  –  where   investments  in  revenue  and  growth.  This  is  especially  when  you  don’t  yet  know  how  performance  as  well  as  good  performance.   to  press  release  downloads  to  search  engine   It  requires  top-­‐level  commitment,  discipline,  category  they  are  really  in.   and  investment  in  the  right  systems  and  tools.   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • Part  2:     ©  2011  Marketo,  Inc.  All  rights  reserved.
  •   1 Process  begins  with  ROI   scenarios  early  in  the     planning  cycle  to  shape    looking  measurement  and  decision-­‐focused  management. 2a Strategy Impact  & Measurements  are   3.     Focusing  on  the  decisions  that  will     then  planned  concurrent  investment,  you  can  then  determine  exactly   incorporated  to  how  you  will  measure  the  program  against  them.   2b Measurements  capture   and  generate  insight  to   3 ROI  results  guide  changes   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • STEP ONEESTABLISH GOALS ANDROI ESTIMATES UP-FRONT SHOULD MARKETING HAVE TO JUSTIFY ITSELF? more  likely  to  support  the  investment. Just  the  fact  that  the  marketer  is  walking  program.   the  pursuit  of  true  insight  are  instead  diverted  to  metrics  to  support  those  goals.  Imagine  if  each   changing  parameters  may  vary  the  results  case,  and  expected  case  scenario  outcomes  –  “what  do  we  expect  will  happen  in  exchange  for   actual  results. ©  2011  Marketo,  Inc.  All  rights  reserved. 11
  • STEPONE   on  the  right.   MARKETING EXPENSES (EXCLUDING OFFER COSTS) MARKETING IMPACT QUANTITY Campaign  Development $25,000 27,000 Mass  Media $100,000 $40,000 594 $875 MARKETING STAFF EXPENSE $519,750 $450 $2,813 $197,505©  2011  Marketo,  Inc.  All  rights  reserved. 12
  • STEP ONELenskold  Group  provides  excellent  tools       ©  2011  Marketo,  Inc.  All  rights  reserved.
  • STEP ONE   INCORPORATE ALL RELEVANT EXPENSEScase  scenarios.  This  lets  you  protect  your  an  understanding  of  how  changes  to  various     Take,  for  example,  a  program  that  generates  a  lot  ways  the  program  could  fail  –  and  then,  where   sales  wastes  on  pursuing  leads  that  don’t  convert.  the  risks.  This  may  include  things  directly   expenses  are  included.and  managing  risks  up-­‐front,  you  lessen  the   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • STEP TWODESIGN PROGRAMS TO BEMEASURABLE A  key  part  of  planning  for  measurement  is   MEASUREMENT COSTS MONEY – SO SPEND WISELY   measure  everything.   early  enough  in  their  lifecycle,  and  they  pay              In  almost  every  case,  you  will  need  to        your  spending  levels  across  markets  to   to  learn  whether  something  works,  or  how  to  make     “ It is more important to periodically capture potentially high-impact insights than to frequently is  usually  a  wise  investment.using  test  and  control  groups. measure less important outcomes simply for reporting purposes.” Jim Lenskold, Lenskold Group ©  2011  Marketo,  Inc.  All  rights  reserved.
  • STEP THREEFOCUS ON THE DECISIONSTHAT IMPROVE MARKETING MARKETING REPORTING: JUST BECAUSE YOU CAN DOESN’T MEAN YOU SHOULD  looking  decisions.   is  it’s  important  not  to  measure  just  what  you  can,      and  knowledge.   answer,  and  what  would  I  do  if  the  answer  were    An  integral  part  of  your  planning  process   your  understanding  of  how  to  make  the   even  if  you  don’t  meet  all  of  your  program   improve  the  program.  This  is  almost  always    stance,  which  prevents  you  from  moving     ©  2011  Marketo,  Inc.  All  rights  reserved.
  •  ©  2011  Marketo,  Inc.  All  rights  reserved.
  •     metrics  that  are  not  addressed  directly  in  this   CUSTOMER SATISFACTION AND NET PROMOTER SCORES   incremental  customer  impact  on  company  revenue        Measures  views  and  impact     measures  the  total  sales  and  margins  of   individual  products    Assesses        Measures  which  product   This  is  not  to  imply  that  these  metrics  are  not   important  for  marketers  to  track  –  just  that   companies  are  more  likely  than  low-­‐growth  companies  to  incorporate   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • WHERE METRICS GO WRONGmetrics  to  choose  from,  and  almost  all     results  are  hard  to  measure.  In  contrast,  sales  of  them  measure  something  of  value.  The   any  wonder,  then,  that  sales  tends  to  get  the  metrics  internally  within  your  department   For  example,  having  a  packed  event  is  no   of  marketers  measure  lead  quality.  Focusing   good  if  it’s  full  of  all  the  wrong  people.  spend.  Instead  of  pursuing  metrics  that  opt  for  metrics  that  sound  good  and  impress  and  names  gathered  at  trade  shows.   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • The  worst  kinds  of  metrics  to  use  are  “cost   FINANCIAL OUTCOMES OVER ACTIVITY  Within  this  context,  it’s  only   MARKETING CHAMPIONS   leads,  and  sales  tools.  But  these  answers       expenditures. programs  with  enough  emphasis  on  learning  how  to  increase  the   the  same  results.“ ©  2011  Marketo,  Inc.  All  rights  reserved.
  • THE RIGHT METRICS Lenskold  Group  points  out  that  there  are       goals  for  each  of  the  key  metrics  you  choose   to  track.  Your  goals  will  put  your  performance     into  context,  and  help  you  and  your  fellow      –  in  other  words,  your       Business Performance   Metrics & KPIs How did we do last week? Last month?Most  B2B  marketers  should  focus  on  two   Last quarter?   Diagnostic Metrics What is working, and what can work better?Revenue Metrics   impact  on  company  revenue   Leading IndicatorsMarketing Program The  incremental     How will we be doing in the future?Performance Metrics ©  2011  Marketo,  Inc.  All  rights  reserved. 21
  • BUSINESS PERFORMANCE DIAGNOSTIC METRICS LEADING INDICATORS PAUL ALBRIGHT, MARKETO’S CHIEF REVENUE METRICS & KPIS PRESENT: WHAT FUTURE: HOW WILL OFFICER, SHARES HIS SECRETS FOR PAST: HOW DID WE DO? IS WORKING? WE BE DOING? MEASUREMENT SUCCESS:  Revenue Metrics     versus  targets versus  trend  or     choose  wisely.   2.     Measure  success  versus  goals  for  those  metrics   for  every  campaign,  every  channel,  every  sales  Marketing Program    Performance Metrics   group   way  you  can  immediately  see  where  you  are     improving  and  where  you  are  not.Profit Per Customer   acquire     a  customer customer trying  to  achieve,  and  where  you  stand.   serve track  results  weekly,  monthly,  and  quarterly     ©  2011  Marketo,  Inc.  All  rights  reserved. 22
  •  ©  2011  Marketo,  Inc.  All  rights  reserved.
  • a  prospect’s  movement  from  one  stage  to     A NEW BREED: REVENUE MARKETERS™ requires  a  new  revenue  methodology.  disagree.  In  today’s  online  and  social  world,   value  leads  and  maximizes  revenue.”revenue.  This  new  way  of  working  requires   track  movement  through  the  stages  –  which  in   pipeline  coverage  will  help  me  hit  my  targets    DEFINE THE REVENUE CYCLE and  evaluate.   the  revenue  cycle.  This  is  unfortunate,  since     how  their  key  metrics  stack  up  against  their  targets,   prospects  forward.   and  what  they  plan  to  do  to  improve  their  results. clear  rules  for  how  prospects  move  through   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • AWARENESS All Names MarketingSTAGE DEFINITION EngagedAll Names This  is  the  entry  point  for  everyone.  We  have  purposely  called  this  stage   funnel.   Prospect &Engaged   Recycled       Nurturing a  trade  show. Database MQL Lead SDRProspect Sales SAL Lead Opportunity CustomerLead Sales SQLSales LeadOpportunity The  sales  team  has  accepted  these  leads  and  added  them  to  the  pipeline  as    Customer ©  2011  Marketo,  Inc.  All  rights  reserved.
  • Your  company  may  use  only  a  few  revenue  stages,  or  you  may  model  something  more  CATEGORY DEFINITION / TIMELINE EXAMPLEInventory Stages An  inventory  stage  is  a  “holding  pool”  where  leads  and   Common  examples  of  inventory  stages  include  the  prospect   ready  to  move  to  another  stage.          Gate Stages Assume  your  company  only  wants  leads  from  companies  of   dimension.     $100+  million  in  revenue.  In  the  gate  stage,  a  lead  will  move  SLA Stages       nurturing.  If  a  lead  stays  in  this  stage  for  over  14  days,  it       sales  rep. ©  2011  Marketo,  Inc.  All  rights  reserved.
  • DETOUR DISQUALIFIED INACTIVE RECYCLED LOST   STAGES success  path,  so  make  sure  your  model       To   Definition   Lost  or  provide  the  highest  value,  sales  should  not   marked  as   who  are  non-­‐   leads  in     deferred   responsive   need  of  more   sales-­‐ready. over  the  last     nurturing (ongoing   rules  that  govern  how  and  when  your   prospects  move  from  one  stage  to  another.   This  includes  how  your  leads  move  from  the  customers  end  up  in  “lead  purgatory.”  inventory  stages  to  a  minimum  –  perhaps  just  don’t  sit  idle. one  of  your  target  industries.leads  originally  deemed  “sales-­‐ready”  are  not.    Because  no  lead  should  ever  remain  stagnant   if  they  don’t  respond  to  a  campaign  or  visit       a  new  program. ©  2011  Marketo,  Inc.  All  rights  reserved.
  •   BENEFITS BEYOND ANALYTICSnote  that  it  includes  the  success  path  stage,     A  revenue  stage  model  also  provides       move  through  the  funnel.         to  stage.     ©  2011  Marketo,  Inc.  All  rights  reserved.
  • REVENUE CYCLE METRICS METRIC QUESTIONS IT WILL ANSWER EXAMPLESTHAT MATTER Flow (Lead     Generation)     Balance (Lead     Counts)         Conversion     Which  types  of  leads  have       Velocity   Do  certain  types  of  leads  move  faster  through   ©  2011  Marketo,  Inc.  All  rights  reserved.
  •     QUESTION: SHOULD METRICS COUNT PEOPLE, Companies  that  sell  a  lot  of  deals  at  lower   ACCOUNTS OR DOLLARS? that  sell  fewer  deals  of  greater  size.  But  even   accounts,  not  individuals. stages  of  their  funnel.  In  this  case,  digging  into   your  earlier  stages  can  serve  as  a  valid  proxy   it  hard  to  track  accounts  for  early-­‐stage  leads.   For  example,  a  company  that  closes  only   meaningful  than  a  company  closing  many   Given  these  pros  and  cons,  most  companies  ©  2011  Marketo,  Inc.  All  rights  reserved.
  • Understanding  the  conversion  rates  and   LEAD DEFINITIONS & CONVERSION RATES: AN INTIMATE RELATIONSHIPcommunicate  –  your  revenue  cycle  economics.  Let’s  use  Marketo’s  actual  revenue  cycle    As  of  early  2011,  Marketo  spends  ~$275,000  a  month  on  various  demand   -­‐ means  an  incremental  opportunity  is  worth       deal.   Typically,   customers  we  want  to  close  in  future  months.     It  also  allows  us  to  answer  precisely  how   revenue.meaning  they  haven’t  done  anything  in  six  Leads  over  a  two-­‐year  period.   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • LEAD SOURCE CONVERSION RATIO AVG TRANSITION FLOW product  line,  or  channel  source.  Drilling  in   (ALL TYPES) TIME (DAYS) Website 14some  will  convert  faster  than  others.  That’s   Online Ad 29more  powerful  when  you  can  drill  into  the     Trade Show – Virtual 54   Trade Show 37 up  and  down.   AppExchange 15 For  example,  if  your  leads  for  a  certain  source   Important  Lead  Type  Variables   Webinar 38 418 Alliance 37 313 PPC_GS_US 13 Not Available 4 234 Sponsorship 70 229 Partner 55 Content Syndication 37 133 Web Direct 44 115 Organic – Google 24 113 Web Referral 40 111 ©  2011  Marketo,  Inc.  All  rights  reserved.
  • REVENUE PERFORMANCEMANAGEMENT METRICS        sales  work  –  and  work  together  –  it  requires  a  new  set  of  metrics  that  focus  not  on  how  end-­‐to-­‐end  revenue  engine.    than  any  other,  provides  an  accurate  measure     ©  2011  Marketo,  Inc.  All  rights  reserved.
  •    to  measure  your  impact  on  revenue.  FLOW CONVERSION IMPACT INVESTMENT SALES AND RPM OTHER in  key  inventory  stagesLeads Lead Accepted  Lead Investment  per   Investment  per  Win   Discounts ©  2011  Marketo,  Inc.  All  rights  reserved.
  • TRACKING METHOD BENEFIT By week, month and quarter A  regular  cadence  helps  keep    and  dice  them,  each  of  which  will  frame  your     Trends over time     helps  you  see  if  you’re  improving. Versus goalsgoals  for  each  geographic  region.many  variants  too  frequently,  so  pick  the   Versus benchmarks similar  companies,  as  well  as  versus  your  own   company’s  historical  results. By source By channel, product, region, etc. important  it  is  to  track  your  key  metrics  on  a   more  granular  level. ©  2011  Marketo,  Inc.  All  rights  reserved.
  •                                                           t                              Target  Latent  Leads                                                                                  Channel                        Install  Base                            ©  2011  Marketo,  Inc.  All  rights  reserved.
  • ©  2011  Marketo,  Inc.  All  rights  reserved.
  • WHY MEASURING MARKETING larger  companies  or  more  complex  purchases,  PROGRAMS IS DIFFICULT DON’T GO OVERBOARD ON PROGRAM MEASUREMENT know  which  programs  have  the  most  impact.  In  many  cases,  factors   out  that  marketers  tend  to  overemphasize  their   impact  program  results  –  from  macro-­‐economic   trends  to  the  weather  to  the  quality  of  the    The  money  you  invest  today  will  have  an  uncertain  impact  at  an   economy  improved,  can  marketers  claim  their  uncertain  point  in  the  future.  Last  month’s  trade  show  may  deliver  results  next  month  or  perhaps   measurement.   measurement  ever  since  John  Wanamaker    wisdom  says  at  least  seven  touches  are  needed  in  order  to  convert  a  cold  lead  into  a  sale.   is,  I  don’t  know  which  half.” According  to  company  comprises  six  people.  In  the  case  of   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • you  a  more  accurate  view  into  your  customer  various  methods  exist  to  give  companies   with  a  corollary  rise  in  cost  and  complexity.  insight  into  their  various  programs’  levels  of   LESS ACCURATE LESS COST  4.  Test  and  Control  Groups Test  and   Control  5.  Full  Market  Mix  Modeling Groups INCREASED INCREASED INSIGHT COMPLEXITY Market  Mix  Modeling   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • PROS AND CONS OF SINGLE ATTRIBUTION (FIRST TOUCH / LAST TOUCH) METHOD ONE low  costSINGLE ATTRIBUTION The  most  common  methodology  for  tracking  the   stages  of  the  revenue  cycle(FIRST TOUCH / LAST TOUCH) Works  well  when  the  majority   of  investments  are  made  in  lead   from  sales company,  or  to  the  key  person.   “investment  per”  lead  metrics   large  deal  or  long  sales  cycle Program  Analyzer   SINGLE DEFINITION EXAMPLE New   Analyzer  Settings   Print                          PDF   ATTRIBUTION Default   First Touch Program  Analyzer            Standard  Reports   New   Analyzer  Settings   Filter:    Driver:  Chris,  Shonal  |  Location:  San  Francisco,  New  York   Print                          PDF   If  a  company  held   Default                      Lead  Reports   Filter:    Driver:  Chris,  Shonal  |  Location:  San  Francisco,  New  York   Settings   allocates  all  the  value            Standard  Reports   X  Axis   generated  a  Lead  that   0                                                                                                                                                  2,000,00,000     Settings                                  Leads  by  Campaign                      Lead  Reports   X  Axis   0                                                                                                                                                  2,000,00,000                                    Leads  by  Campaign   G"4.$                                Leads  by  Month                                  Leads  by  Month   G"4.$ that  touched  the   closed  a  deal  one  year                      Email  Reports                      Email  Reports                      Campaign  Reports   From:  2500 Y  Axis    To:  8000   From:  2500  To:  8000   deal.  Typically  this  is   later,  that  company                      Company  Reports   Program:  Webinar                        Campaign  Reports   would  give  revenue   Pipeline  Dollars   Cost  $53,000                      Web  Page  Reports   Pipeline  Contribution:  $10,000   S2)6*)$T"66%#4$                    Company  Reports            Revenue  Cycle  Analytics   Contributing  Leads:  45   Program:  Webinar     Y  Axis   Tags     Pipeline  Dollars   From:  1000  To:  4500                      Example  Reports   Location:  San  Francisco   Cost  $53,000                      Web  Page  Reports                      My  Models   Program:  Webinar     Bubble  Size   Pipeline  Contribution:  $10,000   S2)6*)$T"66%#4$                    Analyzers   Cost  $53,000   M)37)#4$          Revenue  Cycle  Analytics   Pipeline  Contribution:  $500,000   Contributing  Leads:  45                                Success  Path  Analyzer   Contributing  Leads:  45                                Comparison  Analyzer   Tags     From:  400 Tags      To:  600   From:  1000  To:  4500                      Example  Reports   Last Touch Driver:  Chris                                  Opportunity  Analyzer   Location:  New  York   Location:  San  Francisco   Color                                Program  Analyzer                      My  Models   Program:  Webinar     N-­‐,,)44$M)37)#4$ Bubble  Size                                Contribution  Analyzer                      Analyzers                                Batting  Average  Analyz   0                                                                                                                                                                                                                                                                            200,000     Cost  $53,000   M)37)#4$ gives  revenue  credit   20,3)$ From:  400  To:  6000                                Success  Path  Analyzer   Pipeline  Contribution:  $500,000   Contributing  Leads:  45   watching  a  product                                Comparison  Analyzer   Tags     Driver:  Chris     From:  400  To:  600   that  touched  the  lead   demo,  that  demo                                Opportunity  Analyzer   Location:  New  York   Color   would  receive  revenue                                Program  Analyzer   N-­‐,,)44$M)37)#4$ was  taken. credit,  even  though  a                                Contribution  Analyzer   0                                                                                                                                                                                                                                                                            200,000     sales  rep  had  nurtured                                Batting  Average  Analyz   20,3)$ From:  400  To:  6000   the  Lead  in  several   other  ways. ©  2011  Marketo,  Inc.  All  rights  reserved.
  • METHOD TWOSINGLE ATTRIBUTION WITHREVENUE CYCLE PROJECTIONS   PROS AND CONS OF SINGLE ATTRIBUTION deeper  insight  into  the  long-­‐term  impacts   WITH REVENUE CYCLE PROJECTION of  your  programs.  For  example,  instead  of   show,  this  approach  looks  at  what  impact   Focuses  on  revenue  impact   the  trade  show  had  at  the  top  of  the  revenue   of  programs,  not  just  top     of  the  funnel historical  conversion  metrics.   the  future  value  of  today’s   Uses  past  performance  to   In  the  example  model  on  the  next  page,  Trade   investments   so  cannot  incorporate  true  long-­‐term  value.  This  applies  across  all   Uses  lead  quality,  not   fairly  good  picture  of  its  returns.  In  contrast,   underlying  changescompanies  with  considered-­‐purchase  products   programs  and  long  revenue  cycles. up  with  actual  results poor  results.  But  this  is  not  an  apples-­‐to-­‐ apples  comparison. ©  2011  Marketo,  Inc.  All  rights  reserved.
  • METHOD TWOPROGRAM INVESTMENT DATE ALL TOUCHED PROSPECTS LEADS OPPS WINS PIPELINE REVENUEunderstanding  of  how  leads  from  similar  trade  future  impact  of  the  trade  show    PROGRAM INVESTMENT DATE ALL TOUCHED PROSPECTS EST. LEADS EST. OPPS EST. WINS EST. PIPELINE EST. REVENUEThink  of  it  this  way.  When  discussing     ©  2011  Marketo,  Inc.  All  rights  reserved.
  • METHOD TWO KEY INSIGHTS: COLUMN DEFINITIONS:program  results.  Below  is  a  summary  of  some    SOURCE PROSPECTS INVESTMENT % LEAD VELOCITY LEAD TO PER PROSPECT (DAYS) OPP INDEX only.Trade Show – Virtual3rd Party Email toPromote ContentTrade Show Taking  all  the  costs  and  conversion  rates  into  Paid Webinar third-­‐party  email  lists  to  promote  our  content.  Pay per Click SearchContent SyndicationOther PaidWebsiteSales ProspectingPartner Co-MarketingOther Inbound ©  2011  Marketo,  Inc.  All  rights  reserved.
  • METHOD THREEATTRIBUTE ACROSS MULTIPLE  You  may  want  to  weight  some  touches  PROGRAMS AND PEOPLE EXAMPLE OF ATTRIBUTING ACROSS MULTIPLE PROGRAMS AND PEOPLEeach  individual  touch.     12  months  ago. You  may  give  more  weight  to  programs     that  touched  the  key  decision  maker  than  those   In  this  scenario,  you  might  give  $50K  credit  to  Trade  sure  you  account  for  only  the  touches  that  track  each  touch  and  contact  person  from  here. deal.   to  weight  certain  types  of  touches  more  heavily   PROS AND CONS OF ATTRIBUTION ACROSS MULTIPLE PROGRAMS AND PEOPLEto  each  one  –  including  count,  pipeline,  revenue,   Incorporates  nurturing  touches  as  well  as  lead   analysisBefore  you  allocate  your  revenues  across   many  touchesdecide  how  to  weight  each  touch  point  –  if  at  all. Focuses  on  all  contacts  associated  with  a  deal,   especially  if  you  weight  all  touches  equally ©  2011  Marketo,  Inc.  All  rights  reserved.
  • METHOD THREE all  the  relevant  contacts  associated  with  an  programs  and  people  is  to  track  all  the   allocate  the  value  of  the  opportunity  to  each   WHEN YOU ASSUME YOU MAKE AN ASS OUT of  the  touches. OF U AND ME Account  Analyzer                Publish  Settings   Add  more  people New   Analyzer  Actions   Print                          PDF   to  this  opportunity Against  Score  or  Against  the like  a  consultant Default   Model  as  the  LINE  dimension  View:  Score  Mode              Account:  Acme  Inc   Star  =  Role  in  Opty          Standard  Reports   Acme  Inc                      Lead  Reports   Account  Analyzer                                  Leads  by  Campaign   Edit  me  and  clone  me   Logged Joe  Smith  (8)     Moment Nancy  Jones  (12)                                  Leads  by  Month   80   Phil  McCloud  (4)                      Email  Reports   Frank  Johnston  (3)                      Campaign  Reports   70   Freddie  Rainbow  (1)                      Company  Reports   Harold  Scotsman  (0)                      Web  Page  Reports   60   Jamal  Tucker  (0)            Revenue  Cycle  Analytics                      Example  Reports   50                      My  Models   Checking  box  includes                    Analyzers   40   Opty their  history  –  these                              Success  Path  Analyzer   Created                              Comparison  Analyzer   30   to  the  account  but  not Program  :  Webinar                                  Opportunity  Analyzer   Cost  per  Lead:  $21   the  opty 20   Success:  ?                                Program  Analyzer                                Contribution  Analyzer   Ability  to  right  click  on 10   a  name  and  add  a  role                              Batting  Average  Analyz   to  an opty  right  here Time  Axis  (By  first  touch  for  any  lead  “checked”    to  last)   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • METHOD FOURTEST AND CONTROL GROUPS With  test  and  control  groups,  you  need  to  A  great  way  to  measure  the  true  impact     apply  the  program  or  treatment  that  you   want  to  measure  to  one  component  of  your   homogeneous  part  of  that  group.  All  other        from  the  get-­‐go. two  equal  geographic  parts,  and  spend  twice   as  much  on  one  group  than  the  other.  You   market  segments  to  analyze  your  campaigns   these  two  groups  were  the  same,  you  can   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • METHOD FOUR   ANOTHER OPTION: PRE-POST TESTINGprogram  on  things  like  revenue.       Pro:  This  approach  doesn’t  give  all  the  credit  to  the             PROS AND CONS OF TEST AND CONTROL GROUPS control  group  in  which  all  other  factors  are  the  same.  of  touches  rather  than  just  single  touches.    This  is  a  great  way  to  test  lead  nurturing   program the  results.    tacks  –  allowing  you  to  test  and  measure  the   Can  measure  almost  any  impact  on    track  versus  another  rather  than  individual   almost  anything  with  the  right  test everything   decent  control  group variance  to  support  program   measurement ©  2011  Marketo,  Inc.  All  rights  reserved.
  • METHOD FIVEFULL MARKET MIX MODELING     PROS AND CONS OF MARKET MIX MODELINGsales  volume  outcomes  are  dependent  on     Measures  the  impact  of  all   required  historical  data programs  –  and  all  external   factors  as  well     Gives  insight  into  program   Focus  on  short-­‐term   sales  changes  can     undervalue  longer-­‐term            $10M  on  trade  shows.      Sales M+3.0*h+2.0*Display+1.5*Trade  Show                made  $125M  in  sales.  And  of  the  $40M  in             ©  2011  Marketo,  Inc.  All  rights  reserved.
  • PROGRAM-SPECIFIC METRICS – WHAT                          YOU SHOULD MEASURE AND TRACK  Bounce  rate                 Click-­‐through  rate                                    indicators  of  market  changes,  and  will  help    Backlinks        track  growth  so  program  managers  can  ensure    Conversions  proper  campaign  mix.            This  list  may  represent  only  some  of  the                Gross  views  are  a  few  metrics  you  may  want  to  track  on      Unique  visitors                  Impressions    Conversions         ©  2011  Marketo,  Inc.  All  rights  reserved.
  • CONCLUSION: PROGRAMMEASUREMENT APPLIED measurements  than  a  handful  of  inaccurate,  It  is  no  small  task  to  maneuver  through  the   inconclusive  metrics.  various  program  measurement  models  and   chunks,  and  go  from  there. What  you  put  in  is  what  you’ll  get  out.   for  future  success.   overall  program  mix  and  prune  individual     top-­‐performing  programs  to  increase  company    Who  doesn’t       ©  2011  Marketo,  Inc.  All  rights  reserved.
  • ©  2011  Marketo,  Inc.  All  rights  reserved.
  • the  methodology  for  making  accurate   HIGHLY ACCOUNTABLE MARKETING FORECASTS 1.     Model  the  stages  of  the  revenue  cycle,  and   then  measure  how  each  type  of  lead  moves   forecasts,  which  take  the  form  of  a  top-­‐down  market   through  the  various  stages  (conversion     2.     Get  accurate  inputs  for  how  many  new   the  sales  forecast.   put  into  the  system  over  future  periods.  out  you  look.  And  the  shorter  the  sales  cycle,   Done  right,  the   input  to  make  a  valid  forecast  for  the  period.how  many  prospects  are  in  each  revenue  cycle  stage  –  and  how  they  are  likely  to  move   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • and  assume  your  conversion  rates  will  remain  engine.   need  to  take  this  into  account.  That  is  why     at  larger  companies  will  need  to  “roll-­‐up”  the  convert  through  the  various  revenue  stages  rates  and  inputs  are  accurate,  you  will  create   their  results.will  deliver  in  future  periods. ©  2011  Marketo,  Inc.  All  rights  reserved.
  • MARKETING FORECAST -4 -3 -2 -1 CUR +1 +2 +3 Commit 244 254 273 282 295 302 Target 257 292 302 311 321 -4 257 -­‐ -­‐ -­‐ -­‐Commit,  Target  and  Forecast.   -3 -­‐ 273 270 -­‐ -­‐ -­‐ -2 -­‐ -­‐ 305 289 -­‐ -­‐ Previous Month -­‐ -­‐ -­‐ 282 302 311 -­‐ Current Month -­‐ -­‐ -­‐ -­‐ 294 305 315 331 Commit Target Forecast Actual aiming  for.  The  goals  for  individual  groups   should  roll-­‐up  to  meet  the  overall  Target,  not   Commit. actual  results  compared  to  forecast  and  plan,   as  well  as  how  the  forecast  changes  over   forecasts  –  especially  over  the  long  term.     the  current  month  and  a  forecast  for  the  next     the  prior  four  months  compared  to  actual     the  forecast  for  other  revenue  stages  such     revenue  forecasts  –  and  deliver  against   them  –  with  equal  or  greater  accuracy,  they   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • ©  2011  Marketo,  Inc.  All  rights  reserved.
  • generate  a  huge  amount  of  data,  most  of  against  your  goals  –  and  communicate  your    to  others  inside  and  outside  your  department.   is  most  useful  to  you.  This  will  translate  into   for  you  to  understand  what  is  really  going  on   are  overwhelmed  with  marginally  relevant  most.  This  will  assist  you  and  your  fellow  decisions  to  improve  revenue.   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • An  important  factor  here  is  using  the  right  example  of  many  elements  that  typically    Line  charts  show  trends.progress  against  key  performance  indicators.   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • PHYSICAL DASHBOARDS In            accomplish.  When  you  communicate  a  clear    While  you  do  need  to  share  insight  into  what  they  mean  and  key  takeaways.insights.”       ©  2011  Marketo,  Inc.  All  rights  reserved.
  • ©  2011  Marketo,  Inc.  All  rights  reserved.
  •  An  analyst  must   In  a  perfect  world,  it’s  ideal  to  hire  a  program  depends  on  how  well  you  implement  it.  This  requires  you  to  set  in  place  the  right   the  results  of  a  given  project  in  ways  that  people,  the  right  process  and  the  right  technology. most  marketers  are  faced  with  the  reality  of  PEOPLE AND CULTURE ownership  to  someone  currently  within  your   they  have  the  skills,  adequate  support,  and    The  ideal  analyst   needs  to  possess  a  demonstrated  willingness  don’t  have  the  right  people  driving  the     a  priority. understand  how  computers,  data  networks,   This  involves  knowing  each  technology’s     my  team,  or  do  I  need  to  look  outside  my   complex  concepts,  and  make  decisions  to   ©  2011  Marketo,  Inc.  All  rights  reserved.
  •  It’s  pointless  to  set  target     goals  if  you  don’t  also  hold  people       do  what  you  can  to  ensure  all  relevant  data    for  which  you  need  to  allocate  certain  periods   this  is  not  the  case.    A  historical   especially  the  C-­‐suite.  When  done  right,   metrics  can  create  a  virtuous  circle,  in  which   the  right  metrics  create  the  support  for     you’ll  encourage  a  vicious  cycle  with  the   opposite  scenario.  metrics. ©  2011  Marketo,  Inc.  All  rights  reserved.
  • PROCESS   you’ll  likely  end  up  in  a  great  place.we  will  discuss  how  you  can  manage  and  implement  the  changes  necessary  in  your   need  to  formalize  the  methods  you’ll  use  to  system  to  succeed.  methodical  approach  over  the  long  term     own  each  part  of  the  process.  As  with  many  projects,  you’ll     performance  reviews.steps.  This  will  ensure  –  and  increase  your  chances  for  success  over  the  short  and  long  term.   ©  2011  Marketo,  Inc.  All  rights  reserved.
  • Whatever  principles  and  methods       MARKETING MEASUREMENT IN REVIEW: A CHECKLIST   your  unique  campaigns.   will  you  collect  your  data   Determine  the  impact  of   Be  discerning  in  how  much   intelligence  you  gather  with   individual  campaigns  and   data  you  incorporate  into   the  system  you’ve  set  in   including  your  customer   channels,  as  well  as  their   these  scorecards.  Too  much   place.  Which  channels  are     search  engines,  in-­‐house   and  campaigns,  and  your     Integrate  historical  data   success  as  a  whole.  It’s   trends  with  your  “what     internally  or  rely  on  outside   helpful  to  integrate  historical   if”  scenarios  to  adjust  and  to  where  we  started.   data  into  your  metrics  as  well   providers. to  uncover  historical  trends. investments  moving  forward. true  impact.  Assign  values  to   4.     Formalize  campaign  data   each  channel,  campaign  and   touch  points  to  deliver  true   key  stakeholders  who   rules  around  when  and  how   metrics  that  represent  how   will  use  your  data  in  their   to  measure  what  you  want  to   measure  how  well  they’re   will  oversee  each  phase  of   8.     Where  individual  user  data  is   achieving  their  goals,  you   the  process. ensure  their  sponsorship  of   see  what  works  and  what   data  from  all  sources.  You’ll   algorithms  exist  to  calculate   process. doesn’t.   the  value  of  individual   you  close  the  loop  of  your   can’t  access  on  a  user  level,   measurements. ©  2011  Marketo,  Inc.  All  rights  reserved.
  • “The first rule of any technology   of  the  marketers  who  want  and  need  to   used in a business is that automation applied to an For  such  an  audience,  powerful  analyzers  and   efficient operation will magnifywho  don’t  use  such  metrics  experience,  there   the efficiency. The second is explore  the  data  trends  and  gain  insight  into   that automation applied to an inefficient operation will magnify the inefficiency.” Bill Gatestools  can  do  a  lot  for  companies,  they  cannot   how  much  they  cost,  and  so  on.  Without  contrast,  automated  measurement  processes   worthless.   Unless  an   data  and  customize  their  own  ad  hoc  reports.   a  marketer  cannot  measure  or  understand   need  to  go. requiring  marketers  who  want  to  analyze   manually  take  data  “snapshots”  from  their     ©  2011  Marketo,  Inc.  All  rights  reserved.
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  • KEY LESSONS TO IMPROVE YOUR    PERFORMANCE, PROFITABILITY,    AND CREDIBILITY WITH MARKETING what’s  urgent,  important  and  relevantMETRICS AND ANALYTICS:                 Model  the  stages  of  your  revenue           Train  and  hire  experienced,  tech  savvy   conversion  rates  and  speed  of  closing   sales     with  your  C-­‐level  suite           in  advance  of  campaigns  and  plan       money concurrent  with  campaign  planning             Integrate  diverse  measurements  to         Apply  the  insights  from  prior   measurements  in  the  current  cycle     unique  strengths  of  each  methodology     of  planning         Delve  into  all  expenses  involved  in         ©  2011  Marketo,  Inc.  All  rights  reserved.
  •   ,   ,   ,     Chairman  and  Founder,  Alinean        @AdamGreco         ,    @MeasureMan ,     ,       Managing  Director,  The  Lenskold  Group Measurement  Toolkit           Campaign,  Customer,  and  Corporate     ,         ,    Lenskold  Group    @JimLenskold ,      WhichTestWon  Amy  Africa’s  Blog   ,   e    @AmyAfrica ,     ,     ,  Conference Management         ,    Conversions Know        Agile  Insights    @Tim_Ash   Investment ,     ,     ,                      @Avinash  Kaushik  @TheGrok,         ©  2011  Marketo,  Inc.  All  rights  reserved.
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  • info@marketo.com performance  management  in  Marketo’s   www.marketo.comTo  get    online,   The  company’s  proven  technology,   comprehensive  services,  and  expert  guidance  To  get    online,  To  get    online,    To  get   ,   2011,  more  than  1000  enterprise  and   . ©  2011  Marketo,  Inc.  All  rights  reserved.
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