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I found this presentation from 2011 in my digital drawers and thought I'd share it with you as it seems to be still relevant after all these years. I hope you find some useful information in it. I've redacted some customer specific information, but mostly complete. Follow me on twitter for more: http://twitter.com/blacktar
Digital Marketing - Everything you need to know about data driven marketing
A Comprehensive Primer on
Data Driven Marketing
The Last Advertising Agency on Earth
What is Digital
Outbound versus inbound, flipping the funnel and a
whole new ball game
Digital Marketing is the promoting of brands using all forms of digital advertising
channels to reach consumers. This now includes Television, Radio, Internet,
mobile, social media marketing and any other form of digital media.
Whilst digital marketing does include many of the techniques and practices
contained within the category of Internet Marketing, it extends beyond this by
including other channels with which to reach people that do not require the use
of The Internet. As a result of this non-reliance on the Internet, the field of digital
marketing includes a whole host of elements such as mobile phones, sms/mms,
display / banner ads and digital outdoor.
Previously seen as a stand-alone service in its own right, it is frequently being
seen as a domain that can and does cover most, if not all, of the more traditional
marketing areas such as Direct Marketing by providing the same method of
communicating with an audience but in a digital fashion. Digital is now being
broadened to support the "servicing" and "engagement" of customers.
๏ Outbound Marketing = Old World Marketing
Focus on finding the customers.
๏ Inbound Marketing = Digital Marketing
Focus on getting found by customers.
๏ Content (Blogs, Videos, White Papers, eBooks, etc.)
๏ SEO / SEM and Keyword Analysis
๏ Social Media / Word of Mouth
Flipping the (Sales)
1.Turn strangers into friends
2.Turn friends into customers
3.Turn your customers into your
4.“Flip the funnel and turn it into
a megaphone!” - Seth Godin
The New Rules of
Old Marketing New Marketing
One-Way Communication Brand is dialogue
Brand recall is holy grail Customers determine brand value
Group customers by
demographics Group customers by behavior
Content controlled by marketers Enterprise + user generated
Virality driven by flash Virality based on content
Michelin Guide: Expert reviews Amazon: User reviews
Publisher controls channels Publishers build relationships
Top-down strategy Bottom-up strategy
Information hierarchy Information on demand
Emphasis on cost - CPM Invest for growth -
Emerging Consumer Insight
Demographics Behaviors, Interests
Impressions Engagement, Actions
Usage / Segmentation Purchase Funnel
"If I told you that I had a room full of current potential
customers all talking about your products and your
competitors, would you not show up? Not listening and then
acting on social media chatter is like not showing up at all.
The only thing worse is to have a presence in social media
and only talk and not listen. It would be like showing up in the
room with earplugs on."
- Scott Stratten, “Unmarketing"
๏ Marketing + Media + Metrics (financial & marketing) +
= Holistic Data Driven Revenue Performance Management
๏ Say what? This presentation aims to clarify. Stay sharp.
Important global changes impacting
marketing and media
“In this new era, each of us must look carefully what we do
and ask ourselves:
1. Can someone overseas do it cheaper?
2. Can a computer do it faster?
3. Am I offering something that satisfy the non-material,
transcendent desires of an abundant age?
These three questions will mark the fault line between who
gets ahead and who gets left behind.”
- Daniel H. Pink, "A Whole New Mind”
๏ Metrics / Data / Performance
๏ Long Tail Markets
๏ Permission Marketing
๏ Crowd Sourcing
๏ Agile / Lean / Data Driven
๏ The new PC is in your pocket, not on your desk or lap
๏ Native apps are here to stay, not a fad
๏ Apps will unbundle existing complex services in separate
tasks, “jobs to be done” in single apps
๏ Platforms not created equal, Apple != Android
Metrics / Data /
๏ With the advent of digital media the possibilities of
measuring, recording and recording data exploded and the
time and cost to producing, deploying and testing almost
๏ Demand for actionable metrics rising
๏ Demand for payment based on performance rising
๏ Actionable Data is king
๏ Don’t do yourself what someone overseas can do cheaper
๏ Overseas quality is getting better and better
๏ Source activities to overseas where it makes financial and
๏ Don’t try to do it in-house just for spite, misplaced loyalty,
fear or nostalgia
Long Tail Markets
๏ When the cost of inventory storage (infinite shelf space,
negligible storage costs) and distribution (zero cost of
reproduction, zero time to market) fall, a wider range of products
๏ This can have the effect of reducing demand for the most
popular products, offsetting the traditional distribution curve.
๏ The old marketing cost / benefit ratio of reaching niches versus
popular “mainstream” no longer valid.
๏ Being found has negligible costs compared to old marketing
way of pushing the product in front of a large enough audience
to compensate for the cost of the reach.
๏ Interrupt marketing is dead -
The consumers ignore it and hate it
๏ Pay, Spray & Pray is dead
๏ Permission marketing is the new order
๏ YOU. HAVE. TO. ASK. FOR. PERMISSION.
๏ In the way every speaker is a microphone, in this digital day
and age, every consumer of content is a potential producer
of content and a potential distributor of messages
๏ The funnel is flipped
๏ Marketers must enable the consumer to produce contend,
buzz about the brand
๏ Every consumer now has the ability to reach the world in
seconds, something only reserved for large corporations
with large wallets in the past; play it real - Thoughtless
๏ Tasks that were once thought impossible can now be
completed by the crowd (funding, wikipedia, mechanical
๏ Corporations can tap their consumer crowd in developing
new products and services (e.g. Dell) and enabling fans to
define their brands and become ambassadors
๏ Broadcasting as we know it is dead dying: Get over it!
๏ Every medium is inherently social; Enable it!
๏ We want to share, it’s in our nature: Support it!
๏ Monologue has given way to dialogue: Embrace it!
๏ Personal Branding; You are the brand
๏ Reputation over talent
๏ Explicit self-packaging, curating
๏ In a society that has an increasing abundance of
commodities, brands must instill and support desires, social
good, meaning and values
๏ Story-building more important than ever
๏ Transition to Branded Utility, Branded Meaning
Agile & Lean
"Lean," is a production practice that considers the expenditure of resources for any
goal other than the creation of value for the end customer to be wasteful, and thus a
target for elimination. Working from the perspective of the customer who consumes
a product or service, "value" is defined as any action or process that a customer
would be willing to pay for.
“Agile” is a group of methodologies based on iterative and incremental
development, where requirements and solutions evolve through collaboration
between self-organizing, cross-functional teams. It promotes adaptive planning,
evolutionary development and delivery; time boxed iterative approach and
encourages rapid and flexible response to change. It is a conceptual framework that
promotes foreseen interactions throughout the development cycle.
Lean (or Data Driven, Evidence Based) Marketing is coming - Embrace it.
"[Ad] Agencies are organized in a classical orchestra in a jazz age"
- Rashid Tobacowala
๏ The now is “search”
๏ The future is “discovery”
๏ In an age of abundance, I don’t need to search - I discover
๏ In the very near future, getting discovered by the consumers
outside of search is the challenge
“A metric is a measuring system that quantifies a trend,
dynamic, or characteristic.In virtually all disciplines,
practitioners use metrics to explain phenomena, diagnose
causes, share findings, and project the results of future events.
Throughout the worlds of science, business, and government,
metrics encourage rigor and objectivity. They make it possible
to compare observations across regions and time periods.
They facilitate understanding and collaboration.”
- David J. Reibstein, Neil T. Bendle, Paul W. Farris, Phillip
E. Pfeifer “Marketing Metrics” Financial Times Press
In recent years, data-based marketing has swept through the
business world. In its wake, measurable performance and
accountability have become the keys to marketing success.
However, few managers appreciate the range of metrics by
which they can evaluate marketing strategies and dynamics.
Fewer still understand the pros, cons, and nuances of each.
In this environment, marketers, general managers, and
business students need a comprehensive, practical reference
on the metrics used to judge marketing programs and quantify
Using metrics (data) to drive marketing
A senior marketing manager in a Fortune 100 company once told
Mark Jeffery of Kellogg School of Management: “Every week I
have to go to a gun fight, the senior executive leadership meeting,
and I am tired of going to this gunfight carrying only a knife.” His
frustration was the result of having no concrete data to answer
hard questions about the value of marketing activities in his
We are living in difficult times, and marketing measurement and
data-driven marketing are becoming increasingly important. Now
more than ever, managers need to justify their marketing
spending, show the value that they create for the business, and
radically improve their marketing performance.
Why is data-driven marketing so difficult for many organizations?
There are many reasons, ranging from “we don’t know how” to the
challenge that branding and awareness marketing activities are fuzzy
and don’t directly impact sales revenues in a short time period. The
challenge is compounded by the exponential growth of data.
International Data Corporation (IDC) estimates that data storage is
growing at 60 percent per year, which suggests the volume of stored
data is doubling approximately every 20 months.
These vast amounts of data are overwhelming and marketers
struggle, with limited time and resources, to measure the efficacy of
what they do. A few marketers and organizations, however, have
mastered data-driven marketing principles and marketing metrics.
Research demonstrates the existence of a divide between market leaders and laggards. A few
statistics from research by Kellogg School of Management highlight the gaps in stark contrast:
๏ Fifty-three percent of organizations do not use forecasts of campaign ROMI, net present
value (NPV), customer lifetime value (CLTV), and/or other performance metrics.
๏ Fifty-seven percent do not use business cases to evaluate marketing campaigns for funding.
๏ Sixty-one percent do not have a defined and documented process to screen, evaluate, and
prioritize marketing campaigns.
๏ Sixty-nine percent do not use experiments contrasting the impact of pilot marketing
campaigns with a control group.
๏ Seventy-three percent do not use scorecards rating each campaign relative to key business
objectives prior to a funding decision.
These findings suggest that the majority of marketing organizations do not have professional
processes in place to manage marketing and that most do not use marketing metrics in their
day-to-day marketing activities. After all, if there is no business case or ROMI (described
later) defined prior to campaign funding, how can you measure success after the fact?
The divide is even more pronounced when we look at marketing organizations’ use of data:
๏Fifty-seven percent do not use a centralized database to track and analyze their
๏Seventy percent do not use an enterprise data warehouse (EDW) to track customer
interactions with the firm and with marketing campaigns
๏Seventy-one percent do not use an EDW and analytics to guide marketing campaign
๏Eighty percent do not use an integrated data source to guide automated event-driven
๏Eighty-two percent never track and monitor marketing campaigns and assets using
automated software such as marketing resource management (MRM)
The vast majority of organizations therefore do not use centralized data to manage
and optimize their marketing. The leaders, however, are on the other side of the
divide and are the smaller percentage of firms, less than 20 percent, that actually do
data-driven marketing and use metrics for measurement in their day-to-day
Why is there a marketing divide, and why is it so hard for organizations to do data-driven
marketing? These statistics are symptoms of why data-driven marketing and
marketing measurement are so difficult for many organizations: the internal
processes do not support a culture of measurement, and they also do not have an
infrastructure to support data-driven marketing and marketing metrics.
But beyond these high-level processes, most marketers are overwhelmed with data
and do not know where to start in terms of measuring the right things to drive real
results. Furthermore, 55 percent of managers report that their staff does not
understand metrics such as NPV and CLTV.
A Data Driven
Know Yourself Know Your
Marketing Build Trust Keep Score
A Data Driven
Data Driven Marketing
Analysis Communication, Personalization
A Data Driven
Clear game plan
bought into by
"The thing that gets me really riled up about people
questioning the ROI of social media is: If I offered you a tool
10 years ago that allowed you to listen and respond to the
casual conversations of your potential, current, and past
customers, you would have paid me $20,000 a month for this
8th wonder of the world. But now, that it is here, and its free,
you question its value? This is why I get ulcers. It’s like
extremely smart business people become temporarily dumb;
it baffles my mind."
- Scott Stratten, “Unmarketing"
The 15 essential metrics for marketing defined by Mark Jeffery at the Kellogg
School of Management are:
1. Brand awareness
4. Customer satisfaction (CSAT)
5. Take rate
7. Net present value (NPV)
8. Internal rate of return (IRR)
10. Customer lifetime value (CLTV)
11. Cost per click (CPC)
12. Transaction conversion rate (TCR)
13. Return on ad dollars spent (ROA)
14. Bounce rate
15. Word of mouth (WOM) (social media reach)
The 5 Essential
1. Cost per click (CPC)
2. Transaction conversion rate (TCR)
3. Return on ad dollars spent (ROA)
4. Bounce rate
5. Word of mouth (WOM, Social Media Reach)
Cost Per Click (CPC)
๏ The essential search engine marketing metric
๏ CPC = Cost per click on a sponsored search link or banner
๏ The essential metric connecting internet clicks to money
๏ TCR = Transaction Conversion Rate; The percentage of
customers who purchase after clicking through on a
๏ The essential return on internet search marketing metric
๏ ROA = Return on Ad Dollars Spent = Net Revenue / Cost
๏ The essential web site performance metric
๏ Bounce Rate = Percentage of customers who leave a
website after spending less than five seconds on it
Social Media Reach
๏ The essential metric for word of mouth on the Internet
๏ WOM = Word of Mouth
๏ WOM = Number of direct clicks + number of clicks from
recommendation / number of direct clicks (one example)
Funnel Metrics &
Cohort (Group) Analysis
The best kind of per-customer metrics to use for ongoing decision making are cohort metrics. For
example, consider an e-commerce product that has a couple of key customer lifecycle events:
registering for the product, signing up for the free trial, using the product, and becoming a paying
customer. We can create a simple report that shows these metrics for subsequent cohorts (groups)
over time. Let’s say we create a weekly report. For each week, we then report on what percentage of
customers who registered in that week subsequently went on to take each lifecycle action. If these
numbers are holding steady from cohort to cohort, then we get clear feedback that nothing
significant is changing. If one suddenly shifts up or down, we get a rapid signal to investigate.
The best thing about funnel metrics is that they allow you to boil down a large amount of information
into a handful of numbers. If you don’t have the software to build these reports automatically,
consider doing it by hand.
This is easy to do if the number of conversion events in relatively small — even if the number of
customers is very large. For example, a typical website will have a 1% registration-to-purchase
conversion rate. So even if you are registering 1000 new customers every day, those customers are
going to result in something like 10 new purchases over their lifetime. So instead of getting fancy, use
the good old index cards. At the end of each day, create an index card with that day’s date on it and
the number of people who registered that day. Then, for each conversion that comes in, make a tally
mark on the index card of the date that the person registered, not the date they purchased. For most
products, this only requires you to maintain a week or two’s worth of index cards, since most
products have customers that make purchase decisions relatively quickly. Then, on a weekly or
monthly basis, gather up all the cards for a given cohort, and compute the conversion rate of the
customers who registered in that period. That’s the number you want to focus on driving up.
One More Thing
A new essential metric to consider
Return on Marketing Investment Return on marketing investment (ROMI) is a relatively new
metric. It is not like the other “return-on-investment” metrics because marketing is not the
same kind of investment. Instead of moneys that are “tied” up in plants and inventories,
marketing funds are typically “risked.” Marketing spending is typically expensed in the
There are many variations in the way this metric has been used, and although no
authoritative sources for defining it exist, the consensus of usage justifies the following:
The idea of measuring the market’s response in terms of sales and profits is not new, but
terms such as marketing ROI and ROMI are used more frequently now than in past periods.
Usually, marketing spending will be deemed as justified if the ROMI is positive.
Purpose: To Measure the Rate at which Spending on Marketing Contributes to Profits
Marketers are under more and more pressure to “show a return” on their activities.
However, it is often unclear exactly what this means. Certainly, marketing spending is not an
“investment” in the usual sense of the word. There is usually no tangible asset and often not
even a predictable (quantifiable) result to show for the spending, but marketers still want to
emphasize that their activities contribute to financial health.
Some might argue that marketing should be considered an expense and the focus should
be on whether it is a necessary expense. Marketers believe that many of their activities
generate lasting results and therefore should be considered “investments” in the future of
๏ ROM = Return on Marketing Investment
๏ The contribution attributable to marketing (net of marketing
spending), divided by the marketing “invested” or risked.
A ROMI Framework
Business Discovery: Market research and analysis to understand the
existing business and impact or the potential marketing campaign or
new product launch.
Base Case: Define the existing market sales, cost and net cash flows
resulting from existing marketing and/or product sales.
Costs: Define all costs of the new marketing campaign or product
launch. These costs include pre-launch marketing, contact costs, new
product development and on-going marketing, customer service and
product maintenance costs.
Upside: The upside revenue impact of the new marketing initiative or
ROMI Impact: The NPV, IRR and payback calculated from the
incremental cash flows - the subtraction of the Base Case and Costs
from the Upside.
Sensitivity Analysis: Vary the assumptions in the model to define the
best, worst and expected cases.
http://goo.gl/zd6dY http://goo.gl/Nu6bu http://goo.gl/wxSwK http://goo.gl/ZHX2G http://goo.gl/hIoPC
Non-actionable metrics that will only make you feel good
"[...] most analytics packages are configured by default to
provide mostly reports on vanity metrics. That makes sense,
since they are the easiest to measure and they tend to make
you feel good about yourself. The only metrics that [you]
should invest energy in collecting are those that help them
make decisions." - Eric Ries
How do we know that we are actually affect change in
the metrics that we're observing? This is the curse of
vanity metrics, numbers which look good on paper but
aren't action oriented: website hits, message volume,
or "billions and billions served." They look great in a
press release, but what do they accomplish?
Using the scientific method to acquire and audit data
All metrics should be:
When someone reads a report about a specific metric, it's
essential that they have some idea how to replicate the result
in the report. Techniques like split-testing, where discrete
groups of customers see different versions of the product, are
the gold-standard here. Following the scientific method gives
confidence that the observed behavior was, in fact, caused
by the change being tested.
Most data warehousing systems provide reports that are too
complicated to read and take too long to generate. As a result, many
teams don't get any benefit out of them. In order for reports to be
worthwhile, it's essential that:
๏ Everyone in the company understand how to read them
๏ Everyone in the company has easy access to the latest data
Additionally, to keep accessibility high, the feedback loop between
taking an action and seeing the results should be as short as possible.
In experience, waiting for even a weekly round-up or having to ask a
data warehousing expert to run a report creates too much friction. Key
data should be available to everyone, anytime, in a matter of minutes.
In order to achieve that goal, the reports themselves have to be
The biggest benefit of actionable metrics is that they can be used to reap the biggest savings in
all of product development, when they tell you that you don't need to do something. Metrics
have to be credible to the people who drive the product vision, including company founders.
Even if they understand a report, and know what caused it, that doesn't mean they will actually
learn. Is the report accurate? When it's your idea on the line, it's much easier to believe the
report is the problem rather than the idea.
Thus, it's important that skeptics can audit a report. When possible, this should mean that report
generation is simple. Hopefully it can be created with direct access to primary data. For
example, a report about revenue that's generated directly from the customer’s master orders
database is more credible than one that requires several intermediate steps. Most importantly, it
should be possible to translate the summary numbers in the report back to the actual customers
who generated them.
Remember, metrics are really reports on people. This is where most off-the-shelf metrics
packages fail. For example, consider a report that claims in a split-test between two proposed
features, feature A generated more revenue than feature B. Which people used feature A? Which
people used feature B? Can a skeptic call them up and ask them questions about their use of
each feature? If not, how can we generate actionable insights about what to test next? Or
consider a report that reports abstract quantities, like website hits or attrition rates. These are
hard to visualize. But if instead our metrics say a sports stadium full of people declined to buy
our product. Ouch! We can all relate to that.
How to Gather
๏ Do A/B split tests
๏ Get per-customer metrics data
๏ Get funnel metrics and do cohort analysis
๏ Do keyword (SEM/SEO) metrics
A/B Split Tests
A/B experiments produce the most actionable of all metrics, because they
explicitly refute or confirm a specific hypothesis. Either way, you can use
split-tests to take action on anything from minor copy tweaks to major
changes in the product or its positioning. However, not all split-tests are
created equal. There is some value in the linear-optimization type tests that
are a useful tactic in growing conversions. But the real value of split-tests
comes when you integrate them into your decision loop: the process of
putting your ideas in practice, seeing what happens, and learning for your
next set of ideas. The tests that drive the most learning are the ones to focus
on. A good rule of thumb is to ask yourself, “if this test turns out differently
from how I expect, will that cast serious doubts on what I think I know about
my customers?” If not, try something bigger.
Good third-party tools for A/B testing are hard to come by — most are too
complex for most situations. If you don’t have an A/B system, you can use
Google Website Optimizer or — if you have a software development team —
build your own.
It’s important to remember, “Metrics are people, too.” Vanity metrics tend to take our attention away
from this reality by focusing our attention on abstract groups and concepts. Instead, take a look at
data that is happening on a per-customer or per-segment basis. For example, instead of looking at
the total number of pageviews in a given month, consider looking at the number of pageviews per
new and returning customer. Those metrics should be relatively constant — unless something
interesting is happening with your product. So even a big rush of new customers shouldn’t change
how many pages they each view on average, unless you’re getting a new kind of customer.
Similarly, if you’re increasing the engagement of customers with your [marketing], that will tend to
show up in the data for the returning customers. But if you just look at their aggregate data, you can
miss important trends. The following pattern is often observed: a big spike of customers joins thanks
to a mention on a prominent web site. If a product has an average customer lifetime of two months,
then after that period elapses, a huge number of customers can be expected to churn out all around
the same time. But these effects are hard to keep track of, since customers are coming and going all
the time. If you focus only on the number of page views, even if you limit it to returning customers,
you might mistake a positive product change for something negative, because you launched it during
a churn-dominated period.
Many analytics packages, including the much-maligned Google Analytics, have the ability to break
down aggregates into per-customer or per-segment analyses. These can help make reports more
actionable if you combine them with the Goal Tracking feature. For example, if you can tell which web
referrers are driving the most traffic, that’s moderately useful. But if you can tell which are driving the
most conversions, then you can start to make ROI-based decisions on where to invest your time in
getting more traffic.
1. Measure what matters
2. Metrics are people too
3. Measure the macro
4. Be agile, build-measure-learn in small batches
5. Apply scientific method to avoid Vanity Metrics
It’s tempting to think that, because some metrics is good,
more metrics is better. That’s why vendors routinely list the
thousands of reports they are capable of generating as a
feature. The truth is, the key to actionable metrics is having as
few as possible. Detailed reports are useful when we’ve
diagnosed a problem and are looking for clues as to what’s
gone wrong. But where does that diagnosis come from in the
first place? Actionable metrics help us realize we have a
problem and point us in the right direction to start solving it.
Metrics are People
Great metrics tools allow us to audit their accuracy by tracing
reports back to the individual people who generated their
data. This improves accuracy, but its more important effect is
that it lets us use the same customers for in-depth qualitative
Not sure what the numbers mean? Get the customers on the
phone and ask them.
Measure the Macro
Even when we’re split testing the impact of a minor change,
like a wording or a new button, it’s important not to get
distracted by intermediate metrics like the click-through rate
of the button itself. We don’t care about click-through rates,
we only care about the customer behaviors that lead to
something useful, whether purchase, retention for advertising
CPM, or some other measurable “success” particular to your
๏ Using near-time data to improve performance
๏ Learning by failing and failing fast
๏ Designing for measurement
๏ Build-Measure-Learn & Repeat
You want to define goals up front and institute a systemized and
relevant way of capture all the relevant meaningful data you can
get to measure the performance of those goals, beware of privacy
concerns and sensibilities, don´t get caught up with vanity metrics;
Shit in = shit out.
Metrics means serious business, influencing yours and the
customer´s bottom line. Consider data gathering and metrics
analysis core to anything you do in marketing.
You do not want to be doing metrics and analysis by hand or with
self made systems over time. You will need automation, processes
Tracking social media, email and webpages to record the behavior of
anyone interested in a product or service to gain a measure of intent.
It can record which social media group or thread they followed, which link
was clicked on in an email or which search term was used to access a
Multiple link analysis can then track buyer behavior - following links and
multiple threads related to product A but not B will show an interest only in
This allows more accurately targeted response and the development of a
nurturing program specifically targeted towards their interest and vertical
Lead generation with targeted marketing programs to drive
awareness and interest in a company's products and/or
services and nurture leads from first interest through to sale.
Marketing Automation involves multiple areas of marketing
and is really the marriage of marketing technologies coupled
with a structured sales process as facilitated by e.g. CRM
Automation of internal marketing processes. These includes
budgeting and planning, workflow and approvals, the marketing
calendar, internal collaboration, digital asset creation and
management and essentially everything that supports the
operational efficiency of the internal marketing function.
Typically these systems are used to set up a complex series of
rules in software systems to trigger action items for internal
sales and marketing professionals to process.
This type of system increases marketers ability to deliver
relevant content to relevant individuals at relevant times.
An Inbound Marketing
Your Software Systems
Automation is a process
consisting of a set of tools
and using them with
To gain maximum benefit
it’s best to consider the
process as a way to tie
them all together and thus
ensure that the whole
system is greater than the
sum of its parts.
Demand vs Lead
๏ Sounds familiar? Same, same but different
๏ Lead Generation = Focus on sales
๏ Demand Generation = Focus on awareness, “why should I
buy this?” “why should I care?”
Targeted marketing programs to drive awareness and interest
in a company's products and/or services.
Demand generation involves multiple areas of marketing and
is really the marriage of marketing programs coupled with a
structured sales process.
There are multiple components of a stepped demand
generation process that vary based on the size and
complexity of a sale. These components include: building
awareness, positioning relevance, supporting validation and
mitigating customer evaluation.
The demand generation function in most businesses resides as part of the marketing
organization. Demand Generation is a holistic approach to marketing and sales
cohesiveness within the company. Building awareness is a vital component in the
demand generation process. Building awareness often takes a continued effort and
involves multiple facets of marketing.
Advanced demand generation programs typically rely on some form of proactive Lead
Generation activities supported by more traditional market programs and processes:
๏ Inbound Marketing: Search Engine Optimization, Viral Marketing, Social Media
Marketing, Email Marketing, Pay Per Click Marketing
๏ Outbound Marketing: Inside Sales/Telemarketing, Outsourced Lead Generation,
Outsourced Appointment Setting
The second key area of focus for a marketer focused on demand generation is ensuring that
when a prospect decides to seek a vendor to provide a solution in a given solution category, they
discover the vendor that the marketer serves. This is again accomplished with a variety of
techniques and tools, often overlapping with the tools used for creating awareness of the
category, but with a different emphasis.
In this phase of the demand generation process, many approaches and tools are used and this
list is only a selection of the more common approaches.
๏Search Engine Marketing – the purchase of advertisements on search engines to appear
when keywords on the specific category, or known competitors in the solution space, are
๏Search Engine Optimization – the use of a variety of techniques to increase a web site’s
natural position in search engine results when keywords on the specific category, or known
competitors in the solution space, are searched for.
๏Webinars or Seminars – online web based seminars, or in person seminars to allow
prospective buyers to discover and understand a vendor’s solution, how it can be used, and
who else is using it, in detail
๏Demonstrations and Free Trials – easily accessed, often online, tools for demonstrating a
solution or accessing a time-limited or feature-constrained trial version to assist prospective
buyers in discovering the solution and its fit with their need
Often confused with Demand Generation is the lead process itself. Converting demand into sales is a
totally separate task. Many companies, however, will call themselves Demand Generation
organizations when they are really lead generating.
This later phase of the buying process involves validating that a selected vendor will meet specified
requirements, coming to an agreement with the vendor on costs, contract terms, support and services,
and finalizing the purchase process.
This often involves coordinating the involvement of other organizational and extra-organizational
resources such as sales representatives and reference clients.
๏ Marketing Tools as previously described – trials, demonstrations, white papers, and seminars
designed for a more detailed evaluation and validation of the solution in question
๏ Reference Management – cultivation, management, and selection of client references willing
to provide a potential purchaser with the perspective of a current (or past) client.
๏ Sales Involvement – coordination of the right sales resource to interact with the prospect to
navigate the final stages of the buying process including contract negotiation, legal terms and
conditions, and sign-off
The coordination of sales involvement, the selection of the right sales resource, and the timing of the
involvement can be difficult to determine. The scoring, ranking, and routing of leads into sales is a
sufficiently deep topic to warrant further exploration.
An introduction to holistic
data driven marketing automation
1. SEO/PPC. Search Engine Optimization and Pay-Per-Click. There tools help you to
design your Keyword strategy; others tools assist in developing your advertising
campaigns, analyze your website’s traffic share, score it for SEO value, determine your
SERP (Search Engine Results Page) ranking, and assess its Domain and Page Authority
(the number and value of your incoming and outgoing links), etc.
2. Social Media Marketing software tools. Reputation Analytics monitor the social
networks to determine the “buzz” around your products/services and company. These
tools also help you to find the most authoritative or influential blogs and websites for your
area. There are tools to help with Twitter, Blogging, LinkedIn and all of the many social
media platforms and because this is a hot topic, there are many articles on how and what
and when. Our blog covers the subject well
3. Content. The whole process depends on having content that makes your site the
destination of choice for people interested in your field. Tools here help create it, display
it, disseminate, and promote it. Our blog offers some ideas on how to create such
4. Marketing Automation packages track, score and grade visitors on their profiles and
digital footprints (their activities on site), and then nurture them from cold leads to hot
prospects via drip-email campaigns run via Automation Rules.
5. The hot prospects (those who achieve a sufficiently high score) are fed into your CRM
system enabling your sales people to place very effective sales calls