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Making Marketing Relevant to the Business 2013 MPM Study Results Webinar
 

Making Marketing Relevant to the Business 2013 MPM Study Results Webinar

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Join Laura Patterson of VEM, Julie Schwartz of ITSMA, and Laura Ramos of Forrester for the unveiling of the 2013 Marketing Performance Management Survey Results.

Join Laura Patterson of VEM, Julie Schwartz of ITSMA, and Laura Ramos of Forrester for the unveiling of the 2013 Marketing Performance Management Survey Results.

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  • Julie
  • Julie
  • JulieGerd Leonhard, an author, strategic advisor, CEO of TheFuturesAgency, and someone whom The Wall Street Journal calls "one of the leading media-futurists in the world.“McKinsey
  • JulieJulie Asks Laura R if she is seeing the same thing in Forrester’s research. What is key to earning the respect and trust of the c-suite?
  • JulieJulie asks Laura P: Were you surprised that 40% or the respondents in our survey are not producing dashboards? Why aren’t all marketers building dashboards? (Laura, the larger the company, the more likely to have a dashboard. Also, product companies (not services only cos) are more likely to have dashboards)
  • Julie
  • Laura Ramos
  • Laura Ramos
  • Laura Ramos
  • Laura Ramos
  • Laura Patterson
  • Laura Patterson
  • Laura Patterson
  • Laura Patterson
  • Laura Patterson
  • Laura Patterson
  • Julie
  • Julie
  • Julie
  • Julie
  • Julie
  • Julie
  • Julie
  • Laura Patterson
  • Laura Patterson
  • Laura Patterson
  • Laura Patterson
  • Laura Patterson
  • Laura Ramos
  • Laura Ramos

Making Marketing Relevant to the Business 2013 MPM Study Results Webinar Making Marketing Relevant to the Business 2013 MPM Study Results Webinar Presentation Transcript

  • twitter hashtag: # MPM13 Welcome! • The Briefing will start shortly • All lines are muted • We do not have hold music, so please do not hang up AU D I O C O N F E R E N C E GLOBAL DIAL-IN: +1-617-614-4042 PARTICIPANT PASSCODE: 532 312 53# ITSMA Web Briefing | June 4, 2013 Measuring and Communicating Marketing Performance
  • twitter hashtag: # MPM13 ITSMA Web Briefing | June 4, 2013 2013 ITSMA/VEM/Forrester | Marketing Performance Management Survey Measuring and Communicating Marketing Performance Julie Schwartz Senior Vice President, Research and Thought Leadership | ITSMA Laura Patterson President | VisionEdge Marketing Laura Ramos Vice President, Principal Analyst serving CMOs | Forrester
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 3Tweet at #MPM13 The future of marketing is in your hands… “The idea of having a separate marketing department is going to vanish.” –Gerd, Leonhard, HBR, May 24, 2013 “In many cases, senior business leaders must open up their agendas and recognize the importance of supporting and even undertaking initiatives that may traditionally have been left to the chief marketing officer… we’re all marketers now.” –McKinsey Quarterly, April 2012
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 4Tweet at #MPM13 B2B Marketing is bifurcating Marketers earning a seat at the “table” Marketers supporting sales
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 5Tweet at #MPM13 Does your marketing organization present its dashboard to the executive team? % of Respondents (N=170) 76 13 11 Don't know No Yes Does your marketing organization currently produce a marketing dashboard? % of Respondents (N=286) Yes 60% No 40% Many, but not all, marketers are producing dashboards and sharing them with the executive team Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 6Tweet at #MPM13 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) Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013 Relies on marketing data to make decisions BU or Division Leaders CEO 16 13 9 Sales CFO/Finance 6
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 7Tweet at #MPM13 Why isn’t the executive team using the marketing data? Three Reasons 1. Marketing activity, not business outcomes 2. Operational efficiency, not effectiveness 3. Past performance, not predictive insight
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 8Tweet at #MPM13 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. Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013 Mean Rating=6.8
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 9Tweet at #MPM13 Consequently, marketing dashboards typically report 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 Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013 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… Marketing contribution to customer retention/loyalty Marketing contribution to market share Marketing contribution to category ownership Other Marketing Activity and Efficiency Business Outcomes
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 10Tweet at #MPM13 Marketers use analytics to report on past performance Are data analytics being used as a predictive tool or to report past performance? % of Respondents (N=342) Note: Multiple responses allowed Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013 79 30 14 Not applicable, we don't use analytics To report past performance As a predictive tool
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 11Tweet at #MPM13 This is what the C-suite cares about Shareholder Value Customer Value Market Share Revenue Profitability/ Margin
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 12Tweet at #MPM13 To capture the C-suite’s attention, marketers need to create clear line of sight between marketing activities and investments with business outcomes Source: VisionEdge Marketing, 2013 Marketing’s Relationship to the Business Shareholder Value Revenue Market Share Investor Satisfaction and Loyalty Customer Satisfaction and Loyalty Business Outcomes Customer Acquisition Customer Retention Customer Growth Marketing Objectives Preference and Satisfaction Endorsement/AdvocacyConsideration and Engagement Marketing Effectiveness Reliable/Trusted Channel Relevance Positioning Marketing Programs Marketing Activities
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 13Tweet at #MPM13 The C-suite wants marketing to paint a picture of how marketing contributes to the business Share of preference  Share of wallet  Propensity to purchase Category growth rate  Product/service adoption rate Innovation revenue rate  Price premium Pipeline volume, value, and velocity These are the things that demonstrate marketing’s business acumen and strategic contribution:
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 14Tweet at #MPM13 The C-suite can’t relate marketing activity-based metrics to business outcomes These are the things that marketers count: Number of new leads Number of sales accepted leads Whitepaper downloads Media mentions Twitter followers Click through rates Site registrations Demo downloads
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 15Tweet at #MPM13 The C-suite can’t relate operational metrics that gauge marketing efficiency to impact and value These are the things that show what you spend on the activities you count: Campaign ROI | Cost per lead Customer Acquisition Cost Marketing influenced pipeline Marketing influenced revenue Leads per rep | Lead conversion rate Program spend:headcount ratio Cost per order dollar Marketing spend:revenue ratio
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 16Tweet at #MPM13 Marketers need to tap the power of data and analytics to advance the BUSINESS What Marketing is currently doing:  Measure and report marketing’s performance  Allocate the total marketing budget  Justify the marketing budget  Target specific campaigns and offers to the segments most likely to respond What Marketing isn’t doing, but had better start: Identify new or emerging customer segments or markets Drive innovation by developing new offerings/solutions Predict customer buying behavior Analyze purchase patterns to prioritize offers made/timing of offers (propensity to buy models)
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 17Tweet at #MPM13 A few exceptional marketers have earned that seat at the proverbial table Marketing was able to measure and report the contribution of its programs to the business Marketing programs made a difference but the contribution to the business goals were not measured and reported Marketing appears to have made some impact on the business, but it is not clear if the impact was material, nor is it measured 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) Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013 27% 38% 29% 6%
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 18Tweet at #MPM13 4 5 11 33 38 50 63 58 39 The "A's" Middle of the Pack Laggards Worse (decreased by 5–20% or more) About the same (decreased or increased 5% or less) Better (increased by 5–20% or more) These “A” marketers are actually moving two of the most important business outcome needles *Indicates a statistically significant difference. Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013 In your last fiscal year compared to two years ago, how did your organization perform in the following areas: % of Respondents 10 9 10 20 41 52 70 50 38 The "A's" Middle of the Pack Laggards Market Share* Customer Satisfaction/ Loyalty*
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 19Tweet at #MPM13 What the “A” Marketers do
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 20Tweet at #MPM13 What the “A” marketers do that the others don’t 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
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 21Tweet at #MPM13 But even the “A” marketers emphasize pipeline metrics over the business outcomes the C-suite cares most about Note: Multiple responses allowed. *Indicates a statistically significant difference. Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013 Which performance metric categories are included on marketing’s dashboard? % of Respondents 81 74 58 33 32 26 23 23 26 Sales pipeline (leads, conversion rates, win rates)* Marketing spend ROI (e.g., campaign ROI, event ROI, lead ROI) Brand awareness/equity Customer satisfaction/loyalty Marketing contribution to share of wallet Marketing contribution to customer retention Marketing contribution to market share Marketing contribution to category ownership* The “A’s” (N=57) 83 57 43 48 32 22 14 17 19 Sales pipeline (leads, conversion rates, win rates)* Marketing spend ROI (e.g., campaign ROI, event ROI, lead ROI) Brand awareness/equity Customer satisfaction/loyalty Marketing contribution to share of wallet Marketing contribution to customer retention Marketing contribution to market share Marketing contribution to category ownership* Middle of the Pack (N=63) 63 53 63 51 37 23 28 16 7 Sales pipeline (leads, conversion rates, win rates)* Marketing spend ROI (e.g., campaign ROI, event ROI, lead ROI) Brand awareness/equity Customer satisfaction/loyalty Marketing contribution to share of wallet Marketing contribution to customer retention Marketing contribution to market share Marketing contribution to category ownership* Laggards (N=43)
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 22Tweet at #MPM13 Despite the room for improvement, the “A” marketers are further along in their journey How well does your marketing dashboard enable you to do the following? Mean Rating The ―A’s‖ Middle of the Pack Laggards N~58 N~65 N~44 Monitor and measure performance against business outcomes and marketing objectives 7.2 ab 6.0 a 5.2 b Track performance of core marketing strategies and processes 7.3 ab 6.1 a 5.4 b Analyze performance of campaigns or other marketing activities 7.6 ab 6.3 a 6.0 b Note: Mean rating based on a 10-point scale where 1=Not at all well and 10=Extremely well. ab indicate a statistically significant difference. Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 23Tweet at #MPM13 The “A’s” (N=100 ) Middle of the Pack (N=151) Laggards (N=143) 7.9ab 6.9ac 5.9bc What is the starting point? The “A” marketers know better what their 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 abc indicate a statistically significant difference. Source: ITSMA/VEM/Forrester Marketing Performance Management Survey, May 2013
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 24Tweet at #MPM13 Get clarity around the business outcomes: There are three questions that every marketer needs to ask the business leaders Source: VisionEdge Marketing, 2013 1 What specific, measurable business outcome will this program impact? 2 How do you expect this program/activity to contribute (what needle needs to move and how far)? 3 How will we know and measure that this program achieved the objective(s)?
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 25Tweet at #MPM13 Select the right metrics Output- Based Operational Outcome- Based Leading- Indicators Predictive Counting  Media Mentions  Trade Show Leads  Click Through Rates  Site Registrations  Demo Downloads  Number of New Contacts/Leads Efficiency  Lead/Rep  Lead Aging  Campaign ROI  Program:People Ratio  Cost/Billing Dollar  Program Spend/Headcount  Program/Total Spend  Awareness:Demand Ratio  Marketing Spend: Revenue Business Outcomes  Market Share  Category Ownership  Lifetime Value  Adoption Rates  Pipeline Contribution Likelihood of Outcomes  Share of Wallet  Rate of Growth: Market  Share of Preference Outputs Outcomes Expected Outcomes  Campaign Lift Modeling  Predisposition to Purchase  Likelihood to Defect  Marketing Mix Optimization Source: VisionEdge Marketing, 2013
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 26Tweet at #MPM13 Set quantifiable performance targets Increase revenue Get more customers Build stronger relationships at senior executive levels at existing accounts Increase brand equity Increase thought leadership downloads Increase revenue for product A by 20% in EMEA strategic accounts Add 12 new customers from key target list Get 3 meetings with executives at ABC Company Increase share of preference by 5% Book 5 initial sales meetings with prospects who responded to the thought leadership call to action
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 27Tweet at #MPM13 Establish a clean data chain between marketing activities, marketing objectives, and business outcomes Business Outcomes Secure net new orders from the EMEA segment; 14% market share and company category ownership of 25% Marketing Objectives Improve new platform trial rate among Tier 1 EMEA accounts by 35% resulting in 5 RFQs Marketing Programs Recruit and train 50 customer ambassadors who tout new platform to at least 13 potential targets Marketing Tactics Initiate online activities that touch 5,000 EMEA customers and produce over 50 potential customer ambassadors for new platform Source: VisionEdge Marketing, 2013
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 28Tweet at #MPM13 Use your data chains as the foundation for your dashboard Report results on three levels:  Executive  Operational  Functional Source: VisionEdge Marketing, 2013
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 29Tweet at #MPM13 In which direction is your marketing organization moving? Marketers earning a seat at the “table” Marketers supporting sales Remember: Marketing performance metrics and reporting should enable better alignment between marketing and the BUSINESS (not just marketing and sales)
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 30Tweet at #MPM13 To be more relevant to the business, marketers need to measure and communicate the right metrics  Get clarity around the business outcomes: What needles does marketing have to move?  Select the right metrics: Outcome-based, leading indicators, and predictive  Set quantifiable performance targets  Establish a clean data chain between marketing activities, marketing objectives, and business outcomes  Use your data chains as the foundation for your marketing dashboard
  • Measuring and Communicating Marketing Performance | OLB130604 | © 2013 ITSMA/VEM/Forrester. All Rights Reserved. | 31Tweet at #MPM13 Thank You!Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA jschwartz@itsma.com +1-781-862-8500, Ext. 112 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