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Raab B2B University Marketing Measurement
 

Raab B2B University Marketing Measurement

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David Raab presentation on marketing performance measurement from Silverpop B2B University, November 2009.

David Raab presentation on marketing performance measurement from Silverpop B2B University, November 2009.

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    Raab B2B University Marketing Measurement Raab B2B University Marketing Measurement Presentation Transcript

    • Measurement, Accountability and ROI B2B Marketing University December 1, 2009 David M. Raab Raab Associates Inc. www.raabassociatesinc.com
    •  
    • www.racombooks.com
    • Today’s Goals
      • understand the measures you need
      • build a plan to capture them
    • (Sad) State of the Art
      • 19% of marketers are confident they could forecast the impact on sales of a 10% cut in marketing spend
        • Association of National Advertisers, 2009
        • good news: up from 10% in 2009
      • 24% of marketers calculate ROI, NPV or other profitability metric for at least some marketing investments
        • Lenskold Group / MarketSphere, 2009
        • bad news: barely changed in past five years
    • Why It Matters
      • 3.3x higher Marketing ROI vs. average for best-in-class companies, who more often apply measurement best practices:
        • 1.7x more set channel performance standards
        • 1.7x more assign an individual to regularly calculate ROMI
        • 1.5x more keep history of marketing performance
        • 1.5x more define campaign success measures in advance
        • AberdeenResearch, 2008
      • 2.0x higher ratio of faster vs. slower growth among firms that use ROI metrics vs. those that use traditional metrics
        • Lenskold Group / MarketSphere, 2009
    •  
    • Measurement Goals: Count Response
      • response capture
      • campaign attribution
      • cost capture
      • comparisons vs budget, vs history
      • response quality
    • Measurement Goals: Show Impact
      • import sales data and match to leads
      • attribute sales to campaigns
      • simple ROI (= revenue / campaign cost)
      • full ROI:
        • estimate differences in future value
        • estimate additional marketing & sales costs
      • applies to lead generation campaigns only
    • Marketing / Sales Integration Marketing Sales then… metrics measures # new leads marketing cost / qualified lead marketing cost # qualified leads # accepted leads # closed sales / # accepted leads sales cost / $ sales sales cost # closed sales $ sales
    • Marketing / Sales Integration … now metrics measures # new leads marketing cost / qualified lead marketing cost # qualified leads sales + marketing cost / $ sales # accepted leads # closed sales / # accepted leads sales cost / $ sales sales cost # closed sales $ sales Marketing Sales
    • Marketing / Sales Integration … now
      • Additional Implications:
      • unified sales / marketing reports
      • sales access to individual lead history
      • greater emphasis on recycling leads
      Marketing Sales
    • Measurement Goals: Understand Process
      • define marketing / sales funnel
      • define markers for each funnel stage
      • track progress through stages
      • measure impact of treatments on progress
        • conversion rate and velocity
      • tailor treatments to stages
        • refine based on results
    • Understand Process (1)
    • Understand Process (2)
    • Understand Process (3)
    • Measurement Goals: Optimize Results
      • test management and reporting
      • downstream impact of changes
      • resource allocation
      • business simulation model
      • statistical optimization
      • ROI hurdle rate
    • Measurement Goals: Strategic Alignment
      • strategy definition
      • spending vs. targets
      • market perceptions
      • lead profiles
      • behaviors
    • Strategic Alignment Strategic Objective: penetrate SMB market Marketing Objective: generate SMB leads Marketing Sales Funnel Stage Metrics / Goals Metric Type (all marketing) 30 % of marketing spend against SMB leading reach top 5 Google page rank leading interest 20 % of new leads from SMB coincident desire 65% of SMB leads are sales qualified coincident convert 25% close rate on sales qualified SMB leads lagging convert 15% of sales to SMB lagging
    • Social Media
      • Capability Levels
      • monitor
      • react
      • initiate
      • empower
    • Social Media Social Media Capability Levels broadcast  monitor  react  initiate  empower
      • Social Network Uses
      • 60% thought leadership
      • 49% generate leads
      • 46% customer feedback
      • 35% advertising
      • 29% market research
      • 15% other
        • - BtoB Magazine, 2009
      • Social Media Uses
      • 25% generate awareness
      • 18% customer engagement
      • 16% engage analysts/influencers
      • 15% market products
      • 14% monitor and respond
      • 8% competitive tracking
      • 4% other
      • - Visible Technologies & SiriusDecisons, 2009
    • Social Media
      • Social Media Measures
      • activity: mentions, links, downloads, views, shares, members
      • sentiment: positive/negative comments, evangelists/detractors
      • content: brand attitudes, messages, insights
      • impact: attributed sales, customer satisfaction, service costs
      • Social Media ROI Metrics
      • 31% Web traffic/response rates
      • 20% qualified leads
      • 14% customer loyalty/retention
      • 13% brand awareness
      • 12% revenue
      • 10% other
      • - Visible Technologies and SiriusDecisions, 2009
    • Recap: Five Measurement Goals
      • Count Response
      • Show Impact
      • Understand Process
      • Optimize Results
      • Strategic Alignment
    • Industry Practice
      • 35% use traditional metrics
        • e.g. response rate
      • 35% use basic financial metric
        • e.g. cost/lead
      • 24% use profitability metric (at least sometimes)
        • e.g. NPV, ROI
      • (6% don’t know)
            • Lenskold Group / MarketSphere, 2009
    • Systems CRM/sales automation Web site call center reports & analysis Web analytics
      • marketing
      • automation
      • database
      • campaigns
      • scoring
      email direct mail events search marketing advertising social media
    • Marketing Measurement Maturity Model level data needs system needs measures skills / processes 1. Count Response _ campaign tracking codes, universe, budgeted cost and response _ campaign costs _ campaign responses _ response quality _ campaign management _ marketing planning _ capture responses & link to campaigns _ calculate measures & compare vs. history _ campaign response [varies by channel] _ campaign cost _ cost per response _ plan vs actual results _ response quality _ campaign design _ tracking discipline 2 Show Impact (acquisition programs) _ sales results on leads _ sales & costs on existing customers _ marketing treatments and costs per lead/customer _ marketing lead database _ import sales results & link to marketing leads _ campaign attribution method _ report marketing costs by lead _ estimate long-term value _ new leads per campaign _ sales per lead _ simple ROI (sales / acq cost) _ long-term value per lead _ long-term costs per lead _ full ROI (long term value / all sales & marketing costs) _ long term value forecasting _ cost allocation 3 Understand Process _ customer attributes _ customer behavior _ stage assignment / scoring _ track funnel status over time _ calculate summary measures on transitions and time-in-stage _ correlate stage changes with marketing treatments _ calculate flow through funnel _ funnel counts _ treatment impact on conversion and time-in-stage _ treatment impact on flow through funnel _ treatment ROI (net change in value / change in cost) _ funnel stage definition _ funnel change analysis 4 Optimize Results _ test setup and reporting _ business modeling _ automated optimization _ budget and revenue projections by period _ test design, execution & analysis _ business modeling 5. Strategic Alignment _ strategy tags on campaigns _ Web visitor behaviors _ report budget by strategy tag _ Web surveys & visitor profiles _ social media monitoring _ sales analysis (upsell, etc.) _ trend analysis _ marketing spend vs. target (by strategy tag) _ market perceptions vs. target _ visitor attributes vs. target _ trends _ strategy measure definition _ data interpretation
    • Next Steps
      • Consider:
      • where you’re spending your budget
      • the biggest information gaps
      • potential for improvement
      • management pressure
      • low hanging fruit
      • resource gaps
      • outside resources
      doable within data needs system needs measures skills / processes next week next month end of year mid next year
    • Keys to Success
      • Compared with all firms, companies with effective marketing measurement:
      • 2.5 x more have a formal process to apply measurements to decisions
      • 2.1 x more make targeted investments in measurement systems, skills and data
      • 2.0 x more hold marketers accountable for meeting targeted measurements
      • - CMG Partners and Chadwick Martin Bailey, 2009
    • Thank You David M. Raab email: [email_address] blog: http://customerexperiencematrix.blogspot.com/ Twitter: @draab phone: 914-241-2117