Raab Winning The Marketing Measurement Marathon

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Marketing without measurement like running a marathon in an earthquake -- blindfolded. In this presentation, consultant David Raab offers advice on building an integrated measurement system based on tracking the flow of your customers through the buying process.

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Raab Winning The Marketing Measurement Marathon

  1. 1. Winning the Marketing Measurement Marathon: a Step-by-Step Approach David M. Raab, Principal Raab Associates, Inc. [email_address] October 14, 2010 Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  2. 2. Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  3. 3. Pressures on Marketers <ul><li>new media: more choices </li></ul><ul><li>new buying process: more tasks </li></ul><ul><li>new technology: more capacity </li></ul><ul><li>new expectations: more pressure </li></ul><ul><li>RESULT: greater need for measurement </li></ul>Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  4. 4. Measurement is Important Most Important Concepts: 3 Year Trend source: Anderson Analytics, 2010 Marketing Trends Report Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  5. 5. Measurement is important, but… …we measure the wrong things What Marketing Is Measuring source: Visionedge Marketing, 2010 Marketing Performance Measurement and Management Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  6. 6. Measurement is important, but… …we don’t get any better at it Use of ROI Metrics to Assess Marketing Effectiveness source: Lenskold Group, 2010 Lead Generation Marketing ROI Study Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com Does your firm calculate marketing profitability, ROI (return on investment) or a similar financial measure to assess marketing effectiveness? (n = 303, 326, 226) 2008 2009 2010 Yes, we calculate ROI, net present value (NPV) or other profitability metrics for at least some of our marketing campaigns / investments 26% 24% 27% Somewhat, we calculate some financial metrics such as cost per lead and cost per sale but not profitability metrics such as ROI and NPV. 34% 42% 43% No, we use traditional marketing metrics but not financial metrics. 40% 34% 30%
  7. 7. Measurement is important, but… …we spend our money elsewhere Planned Investments in Key Marketing Initiatives source: Accenture Marketing Transformation, Onward and Up (2010) Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  8. 8. The problem is…everything Barriers to Improvement source: CMG Partners Chadwick Martin Bailey, The Marketing Performance Advantage 2009 Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  9. 9. Measurement Maturity Model <ul><li>count response </li></ul><ul><li>show impact </li></ul><ul><li>understand process </li></ul><ul><li>optimize results </li></ul><ul><li>show strategic alignment </li></ul>Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  10. 10. Marketers Need an Integrated Measurement System Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  11. 11. System Goals <ul><li>show aggregate value from marketing </li></ul><ul><li>show incremental value by program </li></ul><ul><li>value = revenue, not leads </li></ul>Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  12. 12. Purchase Stages Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com anonymous known interested qualified sales ready opportunity proposal sale
  13. 13. Stage-Based Measurement prospect email 60% landing page 20% registration page 20% white paper 100% Webinar 100% demo 70% pricing page 30% forum query 100% clients page 100% Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com anonymous known interested qualified sales ready opportunity proposal sale
  14. 14. Delivery Requirements: Data Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  15. 15. Delivery Requirements: Stage Definitions Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  16. 16. Delivery Requirements: Database Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  17. 17. Delivery Requirements: Projections Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  18. 18. Delivery Requirements: Testing Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  19. 19. System Evaluation Checklist <ul><li>already covered: </li></ul><ul><li>data quality </li></ul><ul><li>stage discovery, rules, prebuilt flows </li></ul><ul><li>analytical database </li></ul><ul><li>projections, optimization and simulation </li></ul><ul><li>testing and interactions </li></ul><ul><li>also: </li></ul><ul><li>integrate with source data </li></ul><ul><li>back-fill historical data </li></ul><ul><li>plans, costs, scenarios </li></ul><ul><li>alerts for over/under performance vs. history, vs. plan, vs. recent </li></ul><ul><li>ad hoc segmentation & data mining </li></ul>Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  20. 20. Critical Metrics Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com goal metric show value of marketing cohort ROI measure program ROI incremental ROI understand stage results stage statistics forecast revenue by period revenue projections
  21. 21. What Next? <ul><li>Make a commitment </li></ul><ul><li>Follow the maturity model: </li></ul><ul><ul><li>measure response: check your data </li></ul></ul><ul><ul><li>measure acquisition: need simple system </li></ul></ul><ul><ul><li>measure nurture: need stage-based system </li></ul></ul><ul><ul><li>improve results: need testing and optimization </li></ul></ul>Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  22. 22. Summary <ul><li>Better measurement is essential </li></ul><ul><li>Advanced measurement requires stages </li></ul><ul><li>Systems are increasingly available </li></ul><ul><li>Better measurement is essential </li></ul>Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com
  23. 23. Thank You! David M. Raab [email_address] Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com

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