Increasing Marketing’s Relevance to the Business

Note: This Abbreviated Summary highlights some of the significant findings from
2013 ITSMA/VEM/Forrester Marketing Performance Management Survey:
Increasing Marketing’s Relevance to the Business
A more in-depth analysis can be found in the full report available for purchase at:
http://www.itsma.com/2013-marketing-performance-management-survey-summary/
Abbreviated Summary | June 2013
Increasing Marketing’s Relevance
to the Business
2013 ITSMA/VEM/Forrester Marketing Performance Management Survey
Matt Kerwick, PhD, Senior Analyst, VisionEdge Marketing
Dianne Kim, Research Associate, ITSMA
Laura Patterson, President, VisionEdge Marketing
Laura Ramos, Vice President, Principal Analyst Serving CMOs, Forrester
Julie Schwartz, Senior Vice President, Research and Thought Leadership, ITSMA
©ITSMA/VEM/Forrester 2013 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.

Key Takeaways
The Situation
Only a handful of senior executives are relying
on marketing data to make decisions.
Furthermore, more than half of marketers are
not confident that they know which metrics and
outcomes its key stakeholders care about.
What’s going on?
Marketers are reporting:
1. Marketing activity, not business outcomes
2. Operational efficiency, not effectiveness
3. Past performance, not predictive insight
The Solution
To capture the C-suite’s attention, marketers
need to create a clear line of sight between
marketing activities with business outcomes.
The best-in-class marketers:
• Speak the language of the business
• Understand how the business leaders
evaluate marketing effectiveness
• Connect marketing activities to
business results
• Produce actionable marketing dashboards
• Present marketing’s dashboard to the
executive team
• Use data and analytics to report past
history and as a predictive tool
• Employ analytics talent
• Invest in analytical tools
• Build analytical models

Remarkably, just 40% of marketers today
believe that measuring marketing’s value
and contribution to the business is
very important or critical
In your organization or
company, how
important is it that
marketing is able to
measure its value and
contribution to the
business?
Mean Rating (N~396)
.
Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013
Very
Important
or Critical
40%

And only a handful of senior executives are
relying on marketing data to make decisions
To what extent are
your key stakeholders
using the data,
metrics, and/or
analyses
developed by
marketing?
% of Respondents
(N~383)
Relies on
marketing data to
make decisions
BU or Division Leaders
CEO
16
13
9
Sales
CFO/Finance 6

9
12
24
18
12
10
6
5
2
2
Extremely Confident = 10
9
8
7
6
5
4
3
2
Not at all Confident = 1
55%
Most marketers don’t know which metrics
and outcomes its key stakeholders care about
How confident are you that you know which metrics/business outcomes your
key stakeholders (e.g., CEO/CFO/BU leaders) care about?
Mean Rating (N=394)
Note: Mean Rating based on a 10-point scale where 1=Not at all confident and 10=Extremely confident.
Mean Rating=6.8

Marketers are reporting on marketing activity
and associated costs, rather than reporting on
metrics executives use to set direction
Which performance metric categories are included on marketing’s dashboard?
% of Respondents (N=163)
Note: Multiple responses allowed.
77
62
53
44
33
31
24
21
19
18
6
Sales pipeline (leads, conversion rates, win rates)
Marketing spend
ROI (e.g., campaign ROI, event ROI, lead ROI)
Brand awareness/equity
Customer satisfaction/loyalty
On-time delivery of marketing programs
Marketing contribution to customer retention/loyalty
Marketing contribution to market share
Marketing contribution to category ownership
Other
Marketing
Activity
and
Efficiency
Business
Outcomes
Marketing contribution to customer
penetration/expansion/share of wallet

Most marketers use data and analytics to
report on past performance rather than
provide predictive insight
Are data and analytics being used as a predictive tool
or to report past performance?
To report past
performance
As a predictive
tool
Not applicable,
we don’t use
analytics
11%
25%
64%

A few exceptional marketers are able to
demonstrate value and contribution
to the business
90–100:
Marketing was able to measure
and report the contribution of its
programs to the business
80–89:
Marketing programs made a
difference but the contribution to
the business goals were not
measured and reported
70–79:
Marketing appears to have made
some impact on the business, but
it is not clear if the impact was
material, nor is it measured
69 or
lower:
Marketing programs didn’t make a
difference—there is no clarity as
to how marketing is contributing
to the business
For 2012, using a 100 point scale, please select what grade the CEO (or you, if
you are the CEO) would give your marketing organization for its ability to
demonstrate its value and contribution to the business. % of Respondents (N=424)
27%
38%
29%
6%

The “A” marketers align their marketing
activities to business metrics that executives
care about
Speak the
language of the
business
Understand how
the business
leaders evaluate
marketing
effectiveness
Connect
marketing
activities to
business results Output-
Based
Operational
Outcome-
Based
Leading
Indicators
Predictive
 Media Mentions
 Trade Show Leads
 Click Through Rates
 Lead/Rep
 Lead Aging
 Campaign ROI
 Market Share
 Category Ownership
 Lifetime Value
 Share of Wallet
 Rate of Growth: Market
 Share of Preference
 Campaign Lift Modeling
 Predisposition to Purchase
 Likelihood to Defect

Produce actionable
marketing dashboards
Present marketing’s
dashboard to the
executive team
“A” marketers establish clear data chains
between marketing activities, objectives,
and business outcomes to produce
actionable dashboards
Business
Outcomes
Marketing
Objectives
Marketing
Programs
Marketing
Tactics

“A” marketers use analytics to inform
future decisions
Use data and
analytics to report
past history
and as a
predictive tool
Employ analytics
talent
Invest in
analytical tools
Build analytical
models
How well does your marketing organization use
data and analytics to enable the following?
Mean Rating
7.5ab
7.0ab
6.0ab
6.3a
5.7a
4.7a
5.7b
5.0b
4.2b
Make tactical
marketing
recommendations
Make strategic
business
recommendations
Predict customer/
market behavior
The “A’s”
(N=76)
Middle of
the Pack
(N=105)
Laggards
(N=101)
Note: Mean Rating based on a 10-point scale where 1=Poorly and 10=Extremely well.
ab indicate a statistically significant difference.

Web-based Survey
Survey invitations were
emailed during March
and April 2013 to the
ITSMA, VEM, and
Forrester communities.
In addition, survey
invitations were
extended via social
media outlets such as
Twitter and LinkedIn.
424 people completed
the survey
The Data Was
Analyzed by:
• A’s: Marketing
demonstrates contribution
to the business (Grade: A)
• Middle of the Pack:
Marketing makes a
difference, but
contribution not measured
(Grade: B)
• Laggards: Marketing may
have an impact, but not
known if impact is
material
(Grade: C/D)
Marketing
Performance
Grade
Study Methodology

Type of Company
43%
36%
21%
Primarily sell
services
Sell both
products and
services
Size of Company
Industry Subsector
Primarily sell
products
Manager
Director
Member
of the
functional
or LOB
leadership
team
Individual
contributor
34
6 7 4
16
8
25
Less
than
$50M
$50M
up to
$99M
$100M
up to
$499M
$500M
up to
$999M
$1B
up to
$4.9B
$5B
up to
$9.9B
$10B
or
more
Software solutions
IT professional services/consulting
Telecommunications and network
systems and solutions
Computer systems and solutions
Marketing services/
advertising agency
Management consulting
Other services
Other product manufacturing
Other technology hardware
systems and solutions
Outsourcing
Architecture/engineering/
construction
Other
20
17
12
9
6
5
5
4
3
3
3
13
34%
29%
28%
9%
Study Methodology
Respondent
Titles
% of
Respondents
(N=294)

Table of Contents for 2013 MPM Survey
For More Information
Julie Schwartz
Senior Vice President
Research and Thought Leadership
ITSMA
jschwartz@itsma.com | +1-407-788-8220
Increasing Marketing’s
Laura Patterson
President
VisionEdge Marketing
laurap@visionedgemarketing.com
+1-512-681-8800, Ext. 12
Laura Ramos
Vice President
Principal Analyst Serving CMOs
Forrester
lramos@forrester.com | +1-650-581-3812
Slide
Executive Summary 3
Methodology and Respondent Demographics 30
Detailed Findings 43
Marketing Performance Management 43
Data and Analytics 64
Dashboards and Models 90
Business Outcome and Sales Metrics
Performance
110
Appendix: Study Definitions 117
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