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WhitePaper
Data Rich: The Payoff Of Marketing
Measurement On Revenue Performance
New Survey Highlights The Connection Between
Analytics & Contribution To Revenue
Sponsored by

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An emphasis on measurement has become part of Smart marketers are realizing that measurement
the job description for most marketers in the current tools allow them to “reverse-engineer” their
business climate. Nearly 9 in 10 (88%) of marketers strategies and processes, providing fact-based
have increased their analytics efforts over the past intelligence on factors such as:
12 to 24 months, according to a new survey of BtoB
▷▷ Campaign performance;
marketers conducted by DemandGen Report.
The main drivers of the increased focus on metrics, ▷▷ Media mix;
according to the BtoB Marketing Measurement
Survey, are the pressure to justify spend (68%) and ▷▷ Content offers;
management’s push for pipeline visibility (64%).
▷▷ Market segmentation; and
However, the survey also revealed that ▷▷ Revenue contribution.
measurement is not viewed simply as reporting tasks
for marketing teams to prove return on investment The following white paper will present a deeper
(ROI.) The ability to track key performance analysis into the survey results, including:
indicators with analytics tools is emerging as a path
✓✓ The average visibility executives currently
to greatly increase marketers’ ability to impact
have into marketing’s impact on revenue;
revenue performance. Progressive marketers
are now using these tools as “radar” to spot and ✓✓ The impact of lead nurturing campaigns;
accelerate the programs having the biggest impact
on the pipeline. ✓✓ Benchmarks into the current metrics being
used to track revenue performance; and
The survey showed that marketers with greater
✓✓ The disparity in revenue contribution
access to and experience in using analytics tools
between organizations with deep
are able to track and respond to which programs
measurement capabilities versus those
generated the highest quality leads, as well as
without.
which campaigns created the strongest ROI in
terms of leads that actually converted to closed
Marketing’s Increased Visibility
deals.
While the pressure to justify spend may have
Has your company increased on Marketing
Measurement over the past 12-24 months? jumpstarted the measurement movement in
marketing, it is clear that there is a big appetite for
insights beyond basic ROI metrics. As the analytics
11%
tools and processes available continue to improve
and expand, the visibility of marketing’s role in
revenue generation is quickly climbing.
According to the survey, more than 4 in 10 CEOs
(42%) are now actively tracking marketing’s impact
89%
on revenue, and 21% of CFOs now have direct
visibility into the revenue performance of marketing.
Data Rich: The Payoff Of Marketing Measurement On Revenue Performance

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A majority (63%) of respondents said CMOs are now The top metrics for marketing performance are
providing reports that show marketing’s impact on still rooted in volume and traffic, but the survey did
revenue. show more sophisticated metrics are emerging.
For example, the top metrics cited were number
Leading marketing consultants point to this of leads generated (88%) followed by web traffic
increased visibility into marketing’s impact as part (72%).
of a transformation that is taking place within
most high growth companies. “For any marketing However, the majority of companies are starting
organization that wants to be viewed as a driver to dig deeper into how those volume metrics are
of growth, rather than just a cost center, the ability equating to real opportunities and revenue.
to map activity to revenue is mandatory,” said
Amy Bills, VP of Marketing at Bulldog Solutions, The growing areas of marketing measurement
an Austin, TX-based firm specializing in BtoB included:
demand generation practices. “When marketing
✓✓ 66% use contact/lead quality and
can validate a specific contribution to revenue
campaign effectiveness;
and is able to use the pipeline data to make
improvements at every stage, there is real power ✓✓ 64% analyze lead conversion at funnel
there.” stages;
This increased visibility correlates to the technology ✓✓ 63% measuring marketing-sourced leads;
solutions now being used by organizations to tie and
marketing investments to revenue performance.
✓✓ 43% track marketing’s influence on
Nearly three quarters (72%) of respondents are using
revenue/deals.
their CRM system to measure and track marketing’s
impact, 69% are using a web analytics application,
As marketers begin to look deeper at conversion
and 54% are using a marketing automation
rates and other pipeline metrics, the survey also
platform.
showed increased activity and measurement
around lead nurturing initiatives. More than 4 in 10
What are the business drivers that have increased (43%) said they are currently tracking the impact of
the focus on marketing measurement?
nurturing, while an additional 30% said they plan to
(check all that apply)
begin measuring the impact of nurturing over the
next 3-6 months. Only 27% of respondents had no
Pressure to justify spend 68%
plans to start measuring the impact of lead nurturing
campaigns.
Management’s push for 65%
better pipeline visibility
For those that are analyzing the impact of lead
Sales team looking for 58% nurturing, the top metric is conversion rate (72%),
more leads followed by shortened sales cycles (39%), number of
Need for deeper re-engaged leads (36%) and improved intelligence
intelligence on customer 45%
for sales prioritization (33%).
segments
Data Rich: The Payoff Of Marketing Measurement On Revenue Performance

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Measuring Marketing’s Another positive trend that emerged from the survey
data was the high level of confidence among
Impact On Revenue
marketers that they would reach their revenue
contribution goals, as 91% said they were either
Ultimately, ROI and other metrics point to how
somewhat or very confident that they would hit their
marketing is helping to influence and drive revenue,
number for the current year.
and more marketers are being evaluated and
compensated against revenue performance
For the limited number of marketers concerned that
metrics. More than half of survey respondents (53%)
they would not reach their goal, the leading inhibitors
said their marketing department is now responsible
were either due to a lack of alignment with sales or
for a revenue goal.
spending limits.
That contribution is proving to represent a
The top three hurdles for reaching revenue
healthy portion of the pipeline, with 72% of those
contribution were:
departments with revenue goals indicating
marketing’s revenue contribution is 20% or more, ✓✓ Insufficient budget to run campaigns (30%);
and 30% of respondents showing marketing
responsible for 40% of more. As visibility into marketing ✓✓ Limited/inability to see volume and quality
contributions increase, so are expectations, as 56% of leads in pipeline (28%); and
of respondents said their revenue contribution goals
✓✓ Limited insight into lead volume and quality
have increased over the past 12 to 24 months.
(21%).
Once marketing is responsible for a revenue goal,
Gap Analysis In
the most common methods of tracking performance
were:
Marketing Analytics
▷▷ Pipeline reports (67%); In addition to the implication of a growing trend
▷▷ Management review (65%); and toward the adoption of marketing measurement,
the survey also uncovered a developing disparity
▷▷ Shared goals with sales (61%).
between those marketers who are tied to revenue
goals versus those that are evaluated against more
How much visibility is there currently within your
traditional metrics.
executive management team into marketing
measurement and its impact on revenue?
(check all that apply) Demonstrating the contrast between marketers with
deeper experience in using analytics versus those
Included in marketing 63% earlier in the adoption curve, the survey found that
reports from CMO
marketing departments currently responsible for a
Tracked by VP of Sales 43% revenue goal consistently ranked an average of
5 to 10 percentage points higher on key pipeline
Actively tracked by CEO 42% performance indicators.
Actively tracked by CFO 21%
Data Rich: The Payoff Of Marketing Measurement On Revenue Performance

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In comparing the total sample against a cross-tab
of marketer with revenue goals, the survey showed REVENUE
significant differences their ability to demonstrate
and influence revenue. Illustrating this point:
Total Marketers
Sample with Rev
Goal
Has budget increased 56% 62%
in last 12-24
Marketing’s impact on 42% 51%
revenue tracked by
CEO
Using a marketing 54% 62% The Next Legs Of
automation system The Revenue Journey
Tracking contact/lead 66% 82%
quality While the research showed analytics tools are
Tracking campaign 66% 73% quickly emerging as a competitive differentiator,
effectiveness it also underscored that most marketers still have
Tracking lead 64% 80% significant opportunities to better apply the data
conversion at stages and intelligence available from analytics tools.
Tracking marketing 63% 80%
sourced leads The survey found marketing measurement is
Tracking influence on 43% 55% still a relatively new process for the majority of
revenue/deals
respondents. When asked to categorize their
Measuring impact 43% 56%
current stage on the marketing analytics journey,
of lead nurturing
campaigns slightly more than half of respondents (51%) said
they are just starting out or are in the early stages.
Conversely, those marketers that are not being Only a quarter (25%) said they are fairly mature
tracked on revenue contribution are still being tied and 18% classified their organizations as “very
to the outdated volume-based metrics that have sophisticated” and ahead of the curve.
traditionally caused breakdowns in alignment
between sales and marketing. According to the The data showed adoption of analytics tools are on
survey, two of the top metrics in place for marketers the rise, but it also reinforced that any technology
who are not tied to revenue were: by itself is not sufficient to improve marketing and
sales results. When asked which hurdles were
▷▷ Number of leads (54%) standing in the way from collecting and analyzing
data, survey respondents cited lack of internal
▷▷ Web traffic (33%)
processes as the top response (48%).
Because many organizations still struggle with their
internal processes for lead management, industry
Data Rich: The Payoff Of Marketing Measurement On Revenue Performance

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analysts suggest that marketing metrics should be In terms of the long-term potential of analytics,
used to improve sales and marketing collaboration. marketers are already looking ahead to further
Illustrating this point, only 43% of survey respondents insights that can make their demand generation
said their VP of Sales is actively tracking marketing programs and revenue contribution more
metrics. predictable.
“Marketers should be using this opportunity to The wish list for additional metrics marketers cited
improve their overall lead management processes included:
and in so doing form a strong alliance with sales,
▷▷ Campaign influence/attribution (64%);
which is lacking in most organizations,” said Carlos
Hidalgo, CEO of The Annuitas Group, a consultancy ▷▷ Predictability of lead conversion (61%);
specializing in lead management processes.
▷▷ Trends over time (55%);
Survey respondents agreed and recognized that
▷▷ Additional pipeline forecasting capabilities
people and process were equally important to
(46%); and
technology in making marketing more predictable
in impacting revenue. When asked how they ▷▷ Cost per qualified lead (46%).
planned to advance to the next stage of marketing
analytics maturity, the results pointed to: About the Survey Sample
▷▷ 76% plan to develop better processes;
The BtoB Marketing Measurement survey was
▷▷ 60% plan to improve alignment between conducted in June 2011. Respondents were
sales and marketing; comprised of BtoB professionals in the DemandGen
Report subscriber base, and represented a range of
▷▷ 41% plan to invest in new technology; and different functional departments and industries.
▷▷ 28% plan to hire new talent.
In terms of roles and responsibilities, the survey
sample included (respondents were able to choose
multiple options):
Is your marketing department currently
responsible for a revenue goal?
▷▷ 86% involved in marketing;
▷▷ 66% working specifically in marketing
operations;
▷▷ 48% in sales;
53% 47%
Yes No
▷▷ 36% in sales operations; and
▷▷ 41% from CRM administration.
Data Rich: The Payoff Of Marketing Measurement On Revenue Performance

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The survey sample also included a mix of SMB, mid- Discovering Pipeline Opportunity
market and larger companies. In terms of revenue:
The early days of marketing measurement
▷▷ 49% of respondents worked at companies
were driven primarily by the motivation to justify
with between $10 million and $50 million in
investments in branding. However, as more BtoB
revenue;
organizations look to increase their demand
▷▷ 20% of companies had revenue between generation strategies and practices, there is an
$50 million and $250 million; opportunity and need to dig deeper into how
marketing is impacting pipeline performance and
▷▷ 9% were in the $250 to $500 million range;
revenue.
▷▷ 10% were from companies with $500 million
Those organizations that can make marketing more
to $1 billion; and
predictable and use pipeline intelligence to drive
▷▷ 13% represented organizations with revenue strategic decisions are likely to have an advantage
$1 billion and above. on their competitors. The ability to measure
conversion and lead progression gives marketers a
The largest segments in terms of industry verticals meaningful seat in boardroom discussions.
were high tech/software (46%) and 28% were in
professional services; 8% in worked in financial “Marketing organizations with granular campaign
services; 8% in health care; 6% in telecom; 5% in visibility can be smarter about the way they spend
consumer products; 5% from other industries. their budget,” Bills said. “They know specifically
what is working and what they need to do to
repeat that, and they can eliminate under-
performing programs.”
With many marketers still having to fight for every
If you are currently struggling to gather the metrics you’d like to budget dollar, Bills added that measurement is
analyze, what are the hurdles preventing you from collecting and another strategic asset when in comes to internal
analyzing the data?
planning sessions. “When planning for 2012 starts,
(check all that apply)
marketers with a handle on revenue contribution
Limitations of tools/ can request budget based on a data-validated
technology 45% business case of what is working,” she said. “I would
much, much rather be able to walk in to a budget
Inability to integrate
data across technology 43% session and say ‘These campaigns drove this much
platforms revenue and to make that work in 2012, I need the
following budget.’”
Lack of internal 48%
processes
Lack of knowledge/ 34%
resources in this area
Data Rich: The Payoff Of Marketing Measurement On Revenue Performance

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About Eloqua
Eloqua is the category creator and leading provider of
1921 Gallows Road 500 demand generation applications and best-practice
Vienna, VA 22181-3900 expertise for business marketers around the world. Thousands
1.866.327.8764 of customers rely on the power of Eloqua’s products and
www.eloqua.com services to execute, automate and measure programs that
generate revenue. Eloqua is headquartered in Vienna,
Virginia, with offices in Toronto, London, Singapore and
throughout North America.
About DemandGen Report
DemandGen Report is a targeted e-media publication
411 State RT 17, Suite 410 spotlighting the strategies and solutions that help companies
Hasbrouck Heights, NJ 07604 better align their sales and marketing organizations, and
ultimately, drive growth. A key component of our coverage
1.888.603.3626
www.demandgenreport.com focuses on the sales and marketing automation tools that
enable companies to better measure and manage their
multi-channel demand generation efforts.
Data Rich: The Payoff Of Marketing Measurement On Revenue Performance