Measure Marketing's Influence on Revenue With Attribution Models
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Measure Marketing's Influence on Revenue With Attribution Models

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    Measure Marketing's Influence on Revenue With Attribution Models Measure Marketing's Influence on Revenue With Attribution Models Presentation Transcript

    • © Copyright 2014 The Pedowitz Group. All Rights Reserved Measure Marketing’s Influence on Revenue With Attribution Models
    • 2 The Pedowitz Group 2014 Confidential Your Presenters Kevin Joyce VP Marketing Strategy The Pedowitz Group Cory Vander Jagt Director, Product Marketing GoodData
    • 3 The Pedowitz Group 2014 Confidential What You Will Learn §  Lay the foundation for scalable, reliable, repeatable revenue attribution §  Understand the different types of revenue attribution models §  Use your revenue attribution models to optimize Marketing investments
    • 4 The Pedowitz Group 2014 Confidential Strategic Partnership §  Cloud based, open analytics platform §  Analytics for Sales, Marketing and Social data §  Full service Revenue Marketing Agency §  Transforms Marketing from a cost to a revenue center
    • 5 The Pedowitz Group 2014 Confidential Revenue Marketing Journey Maturity Stages Minimal Revenue Impact Revenue Maximized §  Implemented Email platform §  Tactical, one off emails, batch and blast §  Cold calling following email tactics §  Little to no alignment between Sales and Marketing Lead Generation §  Integrated full featured Marketing Automation and CRM – Agility and ownership §  Defined Buyer Journey §  Digital Body Language and nurture §  Close alignment of Sales and Marketing Demand Generation §  Systems are optimized – Agility and ownership §  People and processes are optimized §  RPS – Repeatable, Predictable, Scalable Revenue impact from Marketing §  Synergy with Sales Revenue Marketing Traditional §  Marketing focused on brand building and impressions §  Make it pretty department - “Pens, mugs, and events” §  Marketing is not a line of business Metrics ¨  # of “leads” sent to Sales ¨  Cost per lead Metrics ¨  Closed Loop Reporting ¨  Portfolio Funnel Mgmt. Metrics ¨  ROI ¨  Forecasting Metrics ¨  Measured on costs ¨  Measured on activities
    • 6 The Pedowitz Group 2014 Confidential Analytics Competency
    • 7 The Pedowitz Group 2014 Confidential Revenue Marketing Analytics Service
    • 8 The Pedowitz Group 2014 Confidential Revenue Marketing Analytics Service §  Cloud Based Marketing Business Intelligence Service ¨  Connectors For Marketo, Eloqua, Google Analytics, Facebook, Twitter, Salesforce and more.. ¨  Out of the box - 12 dashboards and up to 55 Marketing and Sales reports §  Monthly Engagement with Revenue Marketing Analyst §  Revenue Marketing Analytics Assessment Workshop §  Start reporting in a matter of weeks
    • 9 The Pedowitz Group 2014 Confidential 9 The Pedowitz Group 2014 Confidential What is Marketing Attribution?
    • 10 The Pedowitz Group 2014 Confidential B2B Marketing Attribution – Lead Source §  Pros: ¨  Had the advantage of at least indicating Marketing Sourced Leads ¨  Very easy to implement §  Cons: ¨  Opportunities often attached to subsequent Account Contacts – “Sales Prospecting” ¨  Confusion as to the source: PPC Ad, or Gated Content, or Webinar ¨  Generally just used to link Marketing to NEW prospects ¨  Ignores the concept that Marketing sources Accounts, not just leads ¨  Vastly understates the INFLUENCE of Marketing on Revenue §  Lead Source is not the same as “First Touch Attribution”
    • 11 The Pedowitz Group 2014 Confidential B2B Marketing Campaign Attribution – True ROI Calculate an ROI for every Marketing program §  Pros ¨  Good relative measure of individual programs – correlation to success §  Cons ¨  Requires accurate allocation and summation of all costs and revenues ¨  Requires setting an end date for gathering revenues and costs ¨  Ignores other influences on revenue success ¨  Can be many months or years before true ROI is known in B2B Some firms attempt to measure “Return” in terms of SQLs, MQLs, or Opportunities §  Shortens the period of time required to measure “Return”
    • 12 The Pedowitz Group 2014 Confidential Marketing Attribution Ideal – Marketing Influence Begin Buyer Journey Make Decision Search Engines Link to Chat Receive Email Research Service Value Select Service Research Products/ Vendors Build Short List Receive Value Gain Confidence Receive Newsletter Sales Promotion Explore Competitor options Receive Industry WP Receive Newsletter Receive Reward Read Testimonials Email Incentive Acquisition LoyaltyConsideration RetentionConversion Search Websites Social Live Person MobileEmail@ Identify business need Paid Ads Increase Services Show all of the Marketing activity… ¨  With all of the contacts associated, with all of the revenue in a given quarter Summarize it by activity type and when it happened: ¨  Weight the various Marketing activities - some more heavily (by time or type) Pros ¨  Shows ALL Marketing influence on revenue ¨  Shows Marketing influence on new and existing customers
    • 13 The Pedowitz Group 2014 Confidential Marketing Attribution Ideal §  Cons: 1.  Connecting the dots between contacts, leads, campaigns and opportunities can be difficult 2.  Figuring out the right model to attribute revenue to campaigns and programs can be a daunting task 3.  Interpreting the results and deciding on the best course of action requires a Marketing analytics analyst §  Con #1 is solved with effective Marketing BI solutions §  aka GoodData/TPG Revenue Marketing Analytics Solution §  Con #2 and #3 is something all firms have to grapple with
    • 14 The Pedowitz Group 2014 Confidential Poll Question §  What is your primary mechanism for attributing Marketing to revenue? 1.  None 2.  Lead source 3.  Marketing Automation Analytics 4.  CRM Campaign Reporting 5.  Marketing Business Intelligence Platform
    • 15 The Pedowitz Group 2014 Confidential 15 The Pedowitz Group 2014 Confidential How to Get Started?
    • 16 The Pedowitz Group 2014 Confidential #1 Define Your Lead Funnel Stages and KPIs Added Progressed Balance Avg. Age 351 70 15431 50 Days 35 34 17 2 days 32 37 127 14 days 16 17 35 2 days 11 10 70 56 days 5 - - - 2 2 129 65 days 1 - - - Conversion 10% 90% 50% 66% 49% 40% 50% Lists Web Social EventsSearch Raw BDM Accepted Lead MQL Inquiry Re-Market MA Qualified Lead (MAQL) SAL SQL Opportunity Won Sales BDM Junk, Disqualified
    • 17 The Pedowitz Group 2014 Confidential #2 Connect Campaigns to Revenue §  Utilize the Campaign and Contact Role in your CRM and synch data from Marketing System §  Leverage Marketing BI system to connect the dots: Campaigns to Contacts to Accounts to Opportunities to Revenue
    • 18 The Pedowitz Group 2014 Confidential 18 The Pedowitz Group 2014 Confidential Types of Marketing Attribution
    • 19 The Pedowitz Group 2014 Confidential First Touch Revenue Attribution Newsle&er  Sign  up   100%   Download   Asset   0%   A&end   Webinar   0%   Opportunity   §  100% revenue credit given to the first campaign of which a Lead/Contact was a "responded" member §  Lead Source is similar, but not the same
    • 20 The Pedowitz Group 2014 Confidential First Touch Revenue Attribution Example §  Top 10 highest-revenue generating campaigns by Campaign Type and Amount from the "First-Touch Campaign Attribution" perspective. §  Business Rule: First campaign response must be within seven days of Lead/ Contact created date
    • 21 The Pedowitz Group 2014 Confidential Last Touch Revenue Attribution Newsle&er   Sign  up   0%   Download   Asset   0%   A&end  Webinar   100%   Opportunity   §  100% revenue credit given to the last campaign of which a Lead/Contact was ever a "responded" member before being converted to an Opportunity §  Simple, but suspect approach
    • 22 The Pedowitz Group 2014 Confidential Last Touch Revenue Attribution Example §  Top 10 highest-revenue generating campaigns by Campaign Type and Amount from the "Last-Touch Campaign Attribution" perspective §  The last campaign response must be within seven days prior to the Opportunity created date
    • 23 The Pedowitz Group 2014 Confidential Multi Touch – Even Weight Revenue Attribution Newsle&er  Sign  up   33%   Download  Asset   33%   A&end  Webinar   33%   Opportunity   §  Equally-credits all Marketing touches which the Lead/Contact was ever a "responded" member §  Very fair, may overstate the value of some Marketing activities §  Requires consideration of frequency and recency of some activities
    • 24 The Pedowitz Group 2014 Confidential Multi Touch – Even Weight Revenue Attribution
    • 25 The Pedowitz Group 2014 Confidential Influencing your Campaign and Content
    • 26 The Pedowitz Group 2014 Confidential Multi Touch – Custom Weighting Opportunity   Newsle&er   10%   Download  Asset   30%   A&end  Webinar   60%   §  Custom attribution weighting based on asset type, buying process or time decay §  Requires additional setup and complexity for most marketers not using RMA
    • 27 The Pedowitz Group 2014 Confidential Multi Touch – Before Opportunity Newsle&er  Sign  up   33%   Download  Asset   33%   A&end  Webinar   33%   Opportunity   §  Equally-credits all campaigns of which the Lead/Contact was ever a "responded" member before being converted to an Opportunity §  Ignores Marketing influence once Sales is driving the opportunity
    • 28 The Pedowitz Group 2014 Confidential Multi Touch – After Opportunity Product  Trial   33%   Download  Asset   33%   A&end  Webinar   33%  Opportunity   §  Equally-credits all campaigns of which the contact was ever a "responded" member only after the Opportunity was created §  Isolated Marketing influence on the Sales pipeline
    • 29 The Pedowitz Group 2014 Confidential A Vision of the Future of Attribution
    • 30 The Pedowitz Group 2014 Confidential A Vision of the Future of Attribution Program type Buying Cycle
    • 31 The Pedowitz Group 2014 Confidential Summary 1.  Define your lead funnel stages and KPIs 2.  Connect campaigns to revenue in CRM and Marketing Automation 3.  Utilize the appropriate attribution model(s) for your buying process 4.  Configure your reporting system for the revenue attribution or utilize RMA solution 5.  Review on a quarterly basis and adjust the model(s) as needed
    • 32 The Pedowitz Group 2014 Confidential Questions or Comments? Kevin Joyce VP Marketing Strategy kevin@pedowitzgroup.com Cory Vander Jagt Director, Product Marketing cvj@gooddata.com
    • 33 The Pedowitz Group 2014 Confidential Learn More Follow Us @revenuemarketer @gooddata Free Revenue Marketing Analytics Trial bit.ly/GDTrial-Mktg Get In Touch sales@pedowitzgroup.com
    • 34 The Pedowitz Group 2014 Confidential 34 The Pedowitz Group 2014 Confidential Thank You!