Metrics that Matter for Marketing Measurement
 

Metrics that Matter for Marketing Measurement

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The pressures on Marketers are greater than ever due to new media, new buying processes and new technology. Higher expectations are being set for Marketers every day. What’s the result? A greater ...

The pressures on Marketers are greater than ever due to new media, new buying processes and new technology. Higher expectations are being set for Marketers every day. What’s the result? A greater need for measurement and proof of success. Marketers agree that measuring ROI is important, however, studies show that few Marketers are actually measuring ROI. Where is the disconnect? And what are the metrics that matter? Join David Raab, Principal of Raab Associates, and Jon Miller, VP of Marketing at Marketo, for this on-demand webinar to find out the metrics that really matter for:

* Marketing ROI: show the value of marketing
* Program ROI: measure program impact
* Stage results: understand stage performance
* Revenue forecasts: forecast revenue by period

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Metrics that Matter for Marketing Measurement Metrics that Matter for Marketing Measurement Presentation Transcript

  • Metrics that Matter for Marketing Measurement © 2010 Marketo, Inc.
  • The Speakers David M. Raab Principal, Raab Associates draab@raabassociates.com Jon Miller, VP Marketing and Co- Founder, Marketo jon@marketo.com #RevenueMasters © 2010 Marketo, Inc. Page 2
  • © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 3
  • Pressures on Marketers new media: more choices new buying process: more tasks new technology: more capacity new expectations: more pressure result: greater need for measurement #RevenueMasters © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 4
  • Marketers Agree: Measurement is Important Most Important Concepts: 3 Year Trend Anderson Analytics, 2010 Marketing Trends Report © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 5
  • But, marketers… …measure the wrong things What Marketing Is Measuring Visionedge Marketing, 2010 Marketing Performance Measurement and Management © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 6
  • But, marketers… …don’t get any better at it 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 26% 24% 27% campaigns / investments Somewhat, we calculate some financial metrics such as cost per lead and cost per sale but not profitability 34% 42% 43% metrics such as ROI and NPV. No, we use traditional marketing metrics but not 40% 34% 30% financial metrics. Use of ROI Metrics to Assess Marketing Effectiveness Lenskold Group, 2010 Lead Generation Marketing ROI Study © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 7
  • But, marketers… …spend our money elsewhere Planned Investments in Key Marketing Initiatives Accenture Marketing Transformation, Onward and Up (2010) © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 8
  • The problem is…everything Barriers to Improvement CMG Partners Chadwick Martin Bailey, The Marketing Performance Advantage 2009 © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 9
  • Marketers Need an Integrated Measurement System © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 10
  • Measurement System Goals show aggregate value* from marketing show incremental value* by program *value = revenue, not leads #RevenueMasters © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 11
  • Purchase Stages anonymous known interested qualified sales ready opportunity proposal sale © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 12
  • Revenue Allocation anonymous prospect email 5% landing page 10% known registration page 15% interested white paper 10% qualified Webinar 10% sales ready demo 15% opportunity pricing page 10% forum query 15% proposal clients page 10% sale © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 13
  • Stage-Based Measurement anonymous prospect email 60% landing page 20% known registration page 20% interested white paper 100% qualified Webinar 100% sales ready demo 70% opportunity pricing page 30% forum query 100% proposal clients page 100% sale © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 14
  • Delivery Requirements: Data © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 15
  • Delivery Requirements: Stages © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 16
  • Delivery Requirements: Database © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 17
  • Delivery Requirements: Projections © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 18
  • Delivery Requirements: Testing © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 19
  • Other Requirements… • integrate with source data • back-fill using historical data • plans, costs, scenarios • alerts for over/under performance vs. history, vs. plan, vs. recent • ad hoc segmentation & data mining © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 20
  • Reports / Metrics report goal measures & metrics comments marketing ROI show value - marketing costs (all stages) - relate costs and revenue to - revenue (related to cohort) set of leads (total or by cohort) of marketing - aggregate, not incremental - ROI (=revenue / cost) program ROI measure - incremental marketing cost - requires testing - incremental revenue - may not capture long-term (incremental) program effects (e.g. brand programs) - incremental ROI impact stage results understand - stage costs - doesn’t show ROI - conversions (to next stage) - need to track trends stage - lead inventory by stage - can be aggregate or performance - cost per conversion incremental - conversion rates - average time to conversion revenue forecast - lead inventory by stage - doesn’t distinguish - conversion rate by stage marketing-influenced leads forecast revenue by from other leads - conversion time by stage period - forecast revenue by period - must consider variations in quality of inventory © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 21
  • What Next? make a commitment work in phases:  measure response: check your data  measure acquisition: need simple system  measure nurture: need stage-based system  improve results: need testing and optimization © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 22
  • Summary better measurement is essential advanced measurement requires stages systems are increasingly available better measurement is really essential © 2010 Raab Associates Inc. www.raabassociatesinc.com Page 23
  • Metrics That Matter for Marketing Measurement: How Marketo Does It #RevenueMasters © 2010 Marketo, Inc. Page 24
  • Marketo transforms the way Marketing and Sales teams work – and work together – to improve revenue performance across the revenue cycle Powerful and easy marketing automation Prioritize the hottest sales leads and opportunities Measure and predict marketing’s impact on revenue Adopted by 700 customers in 22 countries in less than three years Best Marketing Solution © 2010 Marketo, Inc. Page 25
  • Marketo’s Revenue Cycle: Stages MQL All Names Recycled Prospect Engaged SAL Awareness SQL Cust- Sales Oppor- Lead Lead & tunity omer Nurturing Database Marketing SDR Sales © 2010 Marketo, Inc. Page 26
  • Model Your Revenue Cycle © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 27
  • Transitions Automate Movement © 2010 Marketo, Inc. Page 28
  • Operational Data & Analytical Data LEAD MANAGEMENT REVENUE CYCLE ANALYTICS • Optimized for transactions • Optimized for analytics • Real-time data • Data over time • Operational reports • Analytical reports Accurate answers that don’t change over time. © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 29
  • Understand The Metrics that Matter Trends over time Metrics that matter: • Balance • Flow • Conversion • Velocity Page 30 © 2010 Marketo, Inc. Marketo Proprietary and Confidential
  • Drill into Ad Hoc Analytics © 2009 Marketo, Inc. All rights reserved. Page 31
  • Create Custom Dashboards © 2010 Marketo, Inc. Page 32
  • Board Dashboard Prospect Lead Opportunity Win © 2010 Marketo, Inc. Marketo Confidential and Proprietary Page 33
  • Conversion Over Time Predict conversions from one stage to another over time Create plans / forecasts about future Marginal Conversion Cumulative Conversion 70 2,000 1,800 60 y = 50.749x-0.571 1,600 50 R² = 0.4301 1,400 y = 994.2x0.1352 40 1,200 R² = 0.9551 1,000 30 800 20 600 400 10 200 0 - 3 13 23 33 43 53 63 73 3 13 23 33 43 53 63 73 © 2010 Marketo, Inc. Marketo Proprietary and Confidential Page 34
  • Marketing Forecasts Prospects Q2 2010 Q3 2010 Q4 2010 Plan 6,635 7,814 9,150 May 7,000 7,520 Jun 8,380 8,500 Jul 8,500 Aug 8,800 10,000 Leads Apr May Jun Jul Aug Sep Oct Nov Plan 760 800 825 1000 1069 1374 1434 1512 Mar 810 850 875 Apr 685 850 875 925 May 818 875 900 915 Jun 909 1000 1069 1374 Jul 924 1200 1374 1434 Aug 1280 1414 1450 1512 Opps Apr May Jun Jul Aug Sep Oct Nov Plan 67 81 82 90 94 100 104 109 Apr 83 83 90 93 May 81 88 90 94 Jun 91 93 95 101 Jul 70 90 100 103 Aug 92 101 104 109 Plan Forecast Actual © 2010 Marketo, Inc. Marketo Confidential and Proprietary Page 35
  • Program Effectiveness Reporting © 2010 Marketo, Inc. Page 36
  • Program Effectiveness Forecasting Conversion Model 70 60 50 y = 50.749x-0.571 40 R² = 0.4301 30 20 10 0 3 13 23 33 43 53 63 73 © 2010 Marketo, Inc. Page 37
  • Q&A David M. Raab Principal, Raab Associates draab@raabassociates.com Jon Miller, VP Marketing and Co- Founder, Marketo jon@marketo.com #RevenueMasters © 2010 Marketo, Inc. Page 38
  • © 2010 Marketo, Inc.