Talk the Talk and Walk the Walk: Building CMO Credibility with CEO-Worthy Metrics
 

Talk the Talk and Walk the Walk: Building CMO Credibility with CEO-Worthy Metrics

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Talk the Talk and Walk the Walk: Building CMO Credibility with CEO-Worthy Metrics Talk the Talk and Walk the Walk: Building CMO Credibility with CEO-Worthy Metrics Presentation Transcript

  • Talk the Talk and Walk the Walk Building CMO Credibility with CEO-Worthy Metrics
  • What Profits Can Be Generated With 10% More Budget? 12% 20% 44% 15% 9% Improve profits by more than 20% Improve profits by 10% to 20% Improve profits up to 10% No major change in profits generated Don't Know #1 Answer: Don’t Know Source: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study
  • When Metrics Take Away Credibility Vanity Metrics Sound good and impress people, but don’t measure impact on revenue or profitability Activity Metrics Measure what you do instead of what results and impact you have
  • When Metrics Take Away Credibility Cost Metrics Frame marketing in terms of cost and spending instead of results and outcomes
  • Metrics That Give Marketing Power “Speak the Language of Business” Revenue Cycle and Forecasts Aggregate impact on company revenue; pipeline performance; predictive forecasts
  • Metrics That Give Marketing Power “Speak the Language of Business” Program Performance Incremental revenue contribution and ROI of individual marketing programs
  • Revenue Cycle Metrics
  • Sales Lead Lead Target Engaged Name Friend Awareness Marketo’s Revenue Cycle Opportunity Customer Nurturing Database TOFU MOFU BOFU
  • Sales Lead Lead Target Engaged Name Friend Awareness Opportunity Customer Nurturing Database TOFU MOFU BOFU
  • Sales Lead Lead Target Engaged Name Awareness Friend Nurturing Database Exposed to us via content, brand, or word of mouth Opportunity Customer
  • Sales Lead Lead Target Engaged Name Friend Awareness Opportunity Customer Nurturing Database Feels a relationship and trust with us
  • Sales Lead Lead Target Engaged Name Friend Awareness Opportunity Customer Nurturing Database Names are just names.
  • Sales Lead Lead Target Engaged Name Friend Awareness Opportunity Customer Nurturing Database Meaningful interaction with us
  • Sales Lead Lead Target Engaged Name Friend Awareness Opportunity Customer Nurturing Database Nurture until ready for next step
  • Sales Lead Lead Target Engaged Name Friend Awareness Opportunity Customer Nurturing Database Marketing qualified lead (score > 100) – SDR reach-out
  • Sales Lead Lead Target Engaged Name Friend Awareness Opportunity Customer Nurturing Database Qualified as sales-ready by SDR
  • Sales Lead Lead Target Engaged Name Friend Awareness Opportunity Customer Nurturing Database Accepted and actively worked by sales
  • Revenue Cycle Modeler Screenshot: Marketo Revenue Cycle Analytics
  • Key topic areas: • Balance (Reach) • Flow • Conversion • Velocity Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc. Screenshot: Marketo Revenue Cycle Analytics Trends over time
  • Use Metrics to Set & Justify Budgets New Names New MQLs 120,000 (900K DB Total) Score>100 60,000 15.3% 10.5% Inventory Of Active Targets 23,000 2.4% 20,000 Inventory of Active MQLs New Opps* New SQLs 1.9% 75% 922 SDR capacity driven 131,000 *Opps is bigger than SQLs because includes outbound and partner referrals 1,000 6 Month Created Opp Inv. 2,000 35% win Wins Inbound / Programs New Targets
  • Marketing Forecasts Get The “Definitive Guide to Marketing Metrics & ROI” http://marketo.com/DG2MM
  • Program Performance
  • Accurately Tracking “Investment” vs Budget
  • Why Measuring Return is Hard • Multiple touches. Seven touches needed to convert a cold lead into a sale • Multiple influencers. Typical buying committee has 5-21 people
  • Source: 2013 Lenskold Group 2013 Lead Generation Marketing Effectiveness Study
  • First Touch
  • Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
  • Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
  • Inbound creates the best leads by far: high conversion, high velocity Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
  • But we also use a Portfolio of programs Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
  • Sponsored Email builds the database, but low conversion Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
  • Webinar, tradeshow, PPC, and virtual tradeshow are top paid TOFU Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
  • Paid Social & Display Ad drive brand and amplify inbound as well Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
  • Average days to Opportunity: 327 days Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
  • Multi-Touch
  • Track All Touches Across People Screenshot: Marketo Revenue Cycle Analytics
  • Track All Touches Across People Screenshot: Marketo Revenue Cycle Analytics
  • Example: Multi-Touch recently closed. A deal worth $100,000Attribution Three people were involved in the deal: • Person A attended Seminar A and Trade Show B • Person B attended Trade Show B • Person C was sent Direct Mail C $100,000 Revenue $25,000 Seminar A $25,000 $25,000 $25,000 Tradeshow B $50,000 $25,000 Direct Mail C $25,000
  • Screenshot: Marketo Revenue Cycle Analytics (actual data)
  • % Above Min* 89% 76% 75% 41% 57% 73% 67% Source: Marketo Revenue Cycle Analytics, Nov 2013 * Percentage of all programs in channel that achieve MT Ratio > 5 10.4 66%
  • % Above Min* 89% 76% 75% 41% (MT) Ratio = Pipeline / Investment 57% Webinar = 54!, Tradeshow = 6.9, Sponsored Email = 3.8, 67% >10 is Great and <5 is Fail 73% Content Syndication = 9.6 Source: Marketo Revenue Cycle Analytics, Nov 2013 * Percentage of all programs in channel that achieve MT Ratio > 5 10.4 66%
  • % Above Min* 89% % Programs with MT Ratio > 5 e.g. Content Syndication has good average but 43% programs “fail” 76% 75% 41% 57% 73% 67% Source: Marketo Revenue Cycle Analytics, Nov 2013 * Percentage of all programs in channel that achieve MT Ratio > 5 10.4 66%
  • Test and Control
  • Example: Test and Control Source: Lenskold Group
  • Planning for Testing Establish Goals and ROI Estimates Up-Front Design Programs to Be Measurable Focus on the Decisions that Improve ROI Test and measure to find not just what works, but what works better.
  • Tweetable Takeaways 1. Reporting is less important than DECISIONS that improve ROI 2. Focus on financial metrics that matter to the CFO (profit, cash, revenue) 3. Avoid cost and spend metrics – focus on investment and return 4. Multi-touch attribution gives more insight into the full funnel 5. A trusted marketing forecast is the single most important step to make marketing a revenue driver, not a cost center @jonmiller