7 Steps to Improve Marketing ROI in 2013
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7 Steps to Improve Marketing ROI in 2013

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More and more companies are requiring their marketing teams to provide ROI for their initiatives. Does your marketing team do this? We invite you to join us to learn how to work with your marketing ...

More and more companies are requiring their marketing teams to provide ROI for their initiatives. Does your marketing team do this? We invite you to join us to learn how to work with your marketing team to ensure they have the tools, resources and strategies to align marketing initiatives with business objectives.

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7 Steps to Improve Marketing ROI in 2013 7 Steps to Improve Marketing ROI in 2013 Presentation Transcript

  • 7 Steps to Improve Marketing ROILorel Marketing Group | 2013
  • •Overview• The Current State of Marketing Organizations• Keys To Change The Current State of Marketing• Barriers To Improvement• How Successful Companies Overcome These Challenges
  • • Holding Your Marketing TeamAccountable• The Current State of Your Marketing Organizations• Do you currently hold your marketing team accountable forrevenue?• Do you involve your marketing team in the planning and setting ofbusiness goals and objectives?• Keys To Change The Current State of Your Marketing• Do you clearly state defined expectations of your marketing team?• Do you understand the metrics behind marketing initiatives?• Barriers To Improvement• Have you empowered your marketing team?• Does your marketing team have the tools they need to accomplishthe objectives?
  • The Current State
  • • The Current State: Marketing TeamAccountability• 65% of marketers surveyed say CEOs and CFOs are demandingROI to secure budgets.• 79% indicate a greater need to measure, analyze, and reportmarketing effectiveness over last year.• Despite this, only 20% of marketers surveyed said the tools andmeasurement efforts were not budgeted for.
  • • The Current State: Marketing Team Accountability• The Current State of Marketing Organizations• Marketing Metrics Are Not Part of Marketing Planning/Budgeting• Rarely Are Marketing Metrics Leveraged In Marketing Functions• Marketing Departments Lack Credibility; No Senior Level Support or Buy-In• Lack of Understanding of Marketing Tools & Systems• Companies indicating highly effective and efficient marketing showed muchgreater strengths in:• having data, facts, and insight to better guide marketing spending decisions (75% vs. 33%)• using good measurements (69% vs. 30%)• using customer analytics (65% vs. 31%)• having marketing operations processes to improve the business of marketing (64% vs.29%)
  • • The Current State: Marketing TeamAccountability• Data is a Priority…• 75% of marketers indicated that having data, facts and insights as paramountwhen making better marketing decisions.• 69% of marketers also noted using good measurements in determining andprioritizing marketing initiatives.
  • • The Current State: Marketing TeamAccountability• Data is a Priority…• But Budgetary Support for Data is Limited.• Only 34% of marketers reported having internal marketing analysts dedicated tohelp assess marketing performance, but only 7% of their marketing budget wasallocated to measurement and analytics• 32% reported 1% to 5% of their budget• 31% reported no budget support for analytics• 22% reported between 6% and 10%
  • Keys to Change
  • •Keys to Change: Understanding Marketing• “There are two types of CEOs: Those who know that they dontunderstand marketing and those who dont know that they dontunderstand marketing.” – Dr. Philip Kotler• Dr. Philip Kotler - the S.C. Johnson & Son Distinguished Professor of International Marketingat the Northwestern University Kellogg Graduate School of Management in Chicago.
  • • Keys to Change: Understanding Marketing• Link Marketing Programs to Business Objectives• Define and Understand Data• Connect data, technology and methodology
  • • Keys to Change: Understanding Marketing• Does Marketing Have Credibility Across The Company?• What CEOs Want From Marketing• Be prepared with financial analysis• Answers without marketing jargon• Evidence of initiative performance• Options & alternatives• Demonstrate predicted results• Recommendations of what has the best financial return on marketing
  • • Keys to Change: Holding Your Marketing TeamAccountable• Ensure Marketing Metrics are Part of Marketing Planning• Leverage Marketing Metrics in Marketing Functions• Instill Marketing Department Credibility; Senior Level Support• Provide Marketing with Tools & Systems• Connect data through technology and methodology
  • Barriers to Improvement
  • • Barriers to Improvement• Challenges Most Organizations Face With Their Marketing Team:• Aligning marketing metrics with business objectives• Empowering your marketing team within the Organization• Balancing brand building & sales conversion• Calculating marketing ROI, reporting & assets• Accessing the right data & bridging data gaps• Setting up the right capabilities with the marketing organization• Developing processes and methodologies to assess and evaluate initiatives against goals
  • • Barriers to Improvement• Challenges Most Marketing Teams Face:• Access to data• Availability of tools• Limited processes or methodologies• Lack of understanding of the metrics• Inability to use the data to drive marketing decisions• Inability to correlate the data to business objectives
  • Overcoming the Challenges
  • • #1 - Leverage Customer Data In Marketing Campaigns: The Difference is in the Conversion Rates• * Results from researchers at Forrester, Jupiter, Amazon.com and Ovum who analyzed campaign performancewhen analytics targeted certain consumers -- across multiple industries and channels.
  • • What Data Do You Need and Where is the Data?• Customers Provide Many Clues and Facts about what they want
  • • #2 - Customer Segmentation – The Right Offer, to the RightPerson, at the Right Time• Know the audience – “touch” fewer people, fewer times• Collect the clues in a data warehouse• Use the clues to make offers at the right time geared toward the individual’s need or interest• Provide more relevant offers• The difference is use of technology & analytics• Shows up as differences in conversion rates and customer satisfactionHIGHER Conversion rates: % of people who respond to the offerHIGHER Customer satisfaction: % of people happy with the company and its products• Source: Good vs. Bad Marketing:Analytics to the Rescue, Dr. Dave Schrader, Teradata, Washington, D.C., June 18, 2003
  • Example: How To Use Customer SegmentationData:
  • • #3 - Behavior Marketing Is More Effective Than Demographics—Example: Finance Industry• Example: Acquisition Program Based on Behavior• Bank notices a customer behavior: a large deposit, a large withdrawal, a marriage, a drop in interest rates, a CDcomes due• Based on the behavior, bank makes an appropriate offer, over the right channel, at the right time: consolidateaccounts, refinance a home, etc.• Measure the results• Best campaigns result in 25-60% conversion rates• Customers are happier—“high-touch,” personalized banking services• Source: Good vs. Bad Marketing:Analytics to the Rescue, Dr. Dave Schrader, Teradata, Washington, D.C., June 18, 2003 How To Hold Marketing Accountable ForRevenues
  • Personalized “Touch” Segmentation
  • • How To Help Marketing Be Accountable• Require Marketing Metrics as Part of Marketing Planning• Leverage Marketing Metrics in Marketing Functions• Connect Data through Technology and Methodology• Systems & Processes•Establish a set of processes to ensure customer insights are leveraged to make marketinginvestments•Data driven marketing, leverage customer data•Create better, more effective marketing campaigns
  • • How To Help Marketing To Be Accountable• Senior Level Buy-In•True executive commitment to making it work.•Instill Marketing Department Credibility; Senior Level Support.• Strategic Alignment•Link marketing activities to strategic objectives.• Making Targeted Investments•Hire the right people, with the right skills and give them access to the right technology and data.
  • • A Closing Remark:• Marketing can and should be deemed as an investment -- like any core function in any company -- activelycollecting customer transactional information and using the data to make smart business decisions.• Data + Tools + Process = Incremental Revenues
  • • Want to jump start your marketing strategy and programs?• Lorél Marketing Group can help you get started with a no-cost discovery meeting that canalign your goals with a vision for your success. Care to learn more? Contact us today atinfo@lorel.com• Lorél Marketing Group• Graphc Arts Building• 590 North Gulph Road• Valley Forge, PA 19406• (610) 337-2343• www.lorel.com• Facebook: www.facebook.com/lorelmarketing• Twitter: www.twitter.com/lorelmarketing• Linkedin: www.linkedin.com/companies/lorel-marketing-group