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Communicating ROI for digital marketing

The document discusses the importance of measuring the ROI of content marketing efforts and how it aligns with the goals of senior executives, particularly in driving revenue and profits. It highlights the misalignment between sales and marketing teams, suggesting that both departments need to work together and share metrics that are meaningful for evaluating success. The text also emphasizes the need for actionable metrics over vanity metrics to improve marketing performance and ultimately drive customer acquisition.

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Communicating ROI of content marketing Mukkul Dasgupta Head of Insights APAC @ LinkedIn Marketing Solutions
“I don’t understand how you help me (personally) hit my goals” “You all look busy but I don’t what you’re doing” “Quality of leads is poor” “Quantity of good quality leads is low” “Customers are not familiar with our brand or products / services and that causes me to waste time in sales calls” “Why can’t you just pivot what you’re doing to help me close this deal now?” Objective How do we counter some of these objections?
DOING good work = Clark Kent / Diana Prince COMMUNICATING that work = Superman / Wonder Woman
WHY DOESN'T YOUR ORGANIZATION MEASURE THE RETURN ON INVESTMENT (ROI) OF ITS CONTENT MARKETING EFFORTS? Why B2B Marketers Don't Measure Content Marketing ROI G O A L S & M E T R I C S No formal justification required We need an easier way to do this We don’t know how to do this Too time-consuming Other Unsure 38% 38% 27% 21% 23% 3%
Always start from the end “What do senior executives care about?”
What do senior executives care about? Revenue & Profits How is marketing driving revenue and profits? CEO SALES VP CMO Revenue / Sales How is marketing generating demand and leads for my team? Optimizing impact How can I go from a cost-center to a revenue driver?
“If you can’t measure it, you can’t improve it.” P E T E R D R U C K E R
What do senior executives care about? Revenue & Profits How is marketing driving revenue and profits? CEO SALES VP CMO Revenue / Sales How is marketing generating demand and leads for my team? Optimizing impact How can I go from a cost-center to a revenue driver?
As a CEO, I would like to see … WHERE SHOULD I INVEST TO DRIVE REVENUE AND PROFITS? CEO MARKETING GENERATED SALES CLOSED DEAL SIZE TIME TO CLOSE ROI Marketing influenced revenue YES YES Rs. W A wks #% Sales owned revenue NO YES Rs. X B wks #% Marketing owned revenue YES NO Rs. Y C wks #% OVERALL Rs. Z D wks #%
What do senior executives care about? Revenue & Profits How is marketing driving revenue and profits? CEO SALES VP CMO Revenue / Sales How is marketing generating demand and leads for my team? Optimizing impact How can I go from a cost-center to a revenue driver?
Sales & Marketing are often misaligned Sales & Marketing look at people through different lens Sales thinks about accounts and individuals, Marketing thinks about broad audiences Sales & Marketing work sequentially, not in coordination Sales is focused on moving prospects along the pipeline, whereas Marketing is focused on generating leads (and dumping them off). Sales & Marketing rely on different datasets Sales is focused on CRM, Marketing uses a large and fragmented marketing technology stack (all of which end up in Excel eventually)
Source: Average LinkedIn data for large tech companies including: Amazon, Cisco, Dell-EMC, Google, HPE, IBM, Intel, Microsoft, Oracle, Salesforce from March to September 2017 (global impressions based on Sponsored Content, Off Platform & Sponsored InMail) 21M+ Members reached by Marketing only 34% of new sales relationships have been Influenced by Marketing 349k+ New Connections recorded by Sales Team Sales & Marketing are often misaligned
Sales 10 minute Marketing update at Sales meetings 1-2 min KPI summary: • What is your Marketing Influenced revenue YTD/QTD • What is your pacing of your lead gen relative to your sales cycle 3-4 min Demand Management details • Statistics on handover of marketing leads to Sales vs. SLAs, including feedback on MQLs, response / closing times, attributes of better leads, etc. 2-3 min Anatomy of a 'real’ opportunity • Tell story of a specific account: company, leads generated, buying committee profiles, etc. • What was their journey: what actions were taken by both marketing & sales, how many days per step, what comments, etc. 1-2 min Q&A • Provide any updates from marketing, • Discuss improvements (e.g. where did SLAs break down & why), • Table joint decisions that need to be taken, etc. • What revenue has marketing influenced? • How am I pacing towards my quotas? • What is the quality of leads? • What actions do I need to take? What Sales cares about … As a Sales VP, I would like to know … WHERE ARE MY LEADS & DEMAND COMING FROM?
KPI Summary HOW AM I PACING TOWARDS MY QUOTA? x% YTD / QTD 0 10 20 30 40 50 60 70 80 90 100 Jan Mar May Jul Sep Nov Actual Target 0 100 200 300 400 500 600 700 800 900 1000 Jan Mar May Jul Sep Nov Actual Target Marketing Influenced Revenue MQL Pacing SQL Pacing
Demand management details QUANTITY OF LEADS: HOW DOES MARKETING’S ACTIVITIES SUPPORT ME? METRIC CURRENT PERIOD PREVIOUS PERIOD OUTREACH TIME OUTREACH SLA STATUS NOTES # of Marketing Qualified Leads (MQLs) Y Z # … … # of Sales Qualified Leads (SQLs) Y Z # … … # of Opportunities Won (Deals closed) Y Z # … … X X X n% n%
Marketing Qualified Leads Demographics QUALITY OF LEADS Top performing Bottom performing Notes Industry • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • … Function • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • … Seniority • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • … Geography • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • … Other … • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • …
Anatomy of an opportunity – leads MAKE THE LEADS ‘HUMAN’ Buying Committee • Name: … • Title: … • Division: … • Supportive: … • Notes: … • Name: … • Title: … • Division: … • Supportive: … • Notes: … • Name: … • Title: … • Division: … • Supportive: … • Notes: … • Name: … • Title: … • Division: … • Supportive: … • Notes: … Sales Rep: John Smith focused on LinkedIn account, US West Coast region • Showcase the quality of leads brought in and nurtured by Marketing • Consider entire Buying Committee and influencers, not only the Key Decision Maker • Highlight supportiveness and other notes with Sales input
Anatomy of an opportunity – sales VISUALIZE JOURNEY OF A LEADSales Rep: John Smith focused on LinkedIn account, US West Coast region 2 4 12 2 18 4 4 6 4 2 2 6 6 6 4 2 6 6 2 8 2 6 4 2 1 2 2 6 4 4 2 0 5 10 15 20 25 30 35 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 #ofSales/MktgActions(linear) Outbound Profile View Inbound Profile View New Connection Saved Leads Saved Account Sent Message CRM Opportunity Created Deal Closed Sales Activity• Highlight sales journey of the account, e.g. • what steps / activities • how long / when • what were outcomes / feedback • Showcase ongoing nurturing and support by marketing to account’s sales journey Marketing Qualified Lead Sales Qualified Lead
Anatomy of an opportunity – sales HOW MARKETING SUPPORTS THAT JOURNEYSales Rep: John Smith focused on LinkedIn account, US West Coast region 8 4 22 6 38 12 12 2 6 1212 3 2 6 2 8 2 6 5 6 6 449 1045 587 552 15 57 75 195 111 1425 1586 1844 281 1 10 100 1000 10000 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 #ofSales/MktgActions(logarithmic) Sales Activity Marketing Clicks Marketing Impressions Awareness & Lead Gen Nurture Prospects ~70 Marketing activities per sales action supported deal close Sales Activity Deal Closed Marketing Qualified Lead Sales Qualified Lead CRM Opportunity Created • Highlight sales journey of the account, e.g. • what steps / activities • how long / when • what were outcomes / feedback • Showcase ongoing nurturing and support by marketing to account’s sales journey
Marketing update Q&A HOW DO WE CONTINUE TO IMPROVE? • … • … Update • … • … Discuss • … • … Decide
What do senior executives care about? Revenue & Profits How is marketing driving revenue and profits? CEO SALES VP CMO Revenue / Sales How is marketing generating demand and leads for my team? Optimizing impact How can I go from a cost-center to a revenue driver?
Principles to choose better ROI-linked marketing metrics Understand what makes your business profitable and how marketing activities drives those factors Get clear on business goals Good enough, ‘directional’ data is much better than precise data. Just do it! Perfection is failure Absolute figures in a B2B context are irrelevant less important Everything’s Relative Pick metrics that have a definable future target value that marketing activities can impact Know what you’re chasing Agree with sales which (proxy) KPIs they believe are most helpful in winning deals Partner with Marry sales
As a CMO, I would like to … SHOW MY TEAM’S IMPACT & BE VIEWED AS A REVENUE DRIVER CMO NURTURE REACH ACQUIRE Acquire (paying) customers3 2 Be in ‘consideration short-list’ by nurturing your audience ROI can only be calculated at this stage (with sales transaction data). Everywhere else you’re only able to use proxy KPIs for value / ROI Make my brand known to the right target audience1
Map marketing activities and metrics to business goals Acquire (paying) customers NURTURE REACH ACQUIRE 2 3 Make my brand known to the right target audience Be in the audience’s ‘consideration short-list’ by nurturing them 1
Marketing Goals Commonly used metrics Recommended metrics Grow Brand Awareness Ensure brand is associated with relevant products and services by the target audience. • Impressions, Traffic, Views, View time • Brand Lift • Target Audience Share of Voice Improve positive brand sentiment Improve the opinion of the brand among the target audience over time. • Likes / Shares / Comments • Brand Sentiment Own thought leadership for select topics Build a reputation as a trusted leader with industry expertise in specific topics that are strategic to your business and serve as a competitive differentiator. • Number of posts • Number of Followers • Topic Ownership & Engagement Brand awareness metrics (closer) aligned to business goals BUSINESS GOAL: REACH RIGHT AUDIENCE AND MAKE MY BRAND KNOWN TO THEM *Metrics lists are illustrative only and non-exhaustive
Brand Lift REACH: GROW BRAND AWARENESS
(Target Audience) Share of Voice REACH: GROW BRAND AWARENESS
Brand Sentiment REACH: GROW BRAND AWARENESS
Topic Ownership & Engagement REACH: GROW BRAND AWARENESS Quiet Threats Laggards Thought Leaders Noise Makers
Topic Ownership & Engagement REACH: GROW BRAND AWARENESS “No one ever got fired for buying IBM”
Map marketing activities and metrics to business goals Acquire (paying) customers NURTURE REACH ACQUIRE 2 3 Make my brand known to the right target audience Be in the audience’s ‘consideration short-list’ by nurturing them 1
‘Vanity’ metrics are out of fashion now a days … “Vanity metrics can’t be linked to any meaningful business goals, aren’t actionable and therefore aren’t relevant. If you mention them in front of a CMO or CEO you will be laughed out of the room.” J a s o n M i l l e r , G l o b a l C o n t e n t M a r k e t i n g L e a d e r @ L i n k e d I n
Use vanity metrics as indicators to optimize your future content, not to measure ROI. We should call them vanity metrics ‘Content Optimization Metrics’ … but that is because we use them incorrectly
Audience engagement metrics aligned to business goals BUSINESS GOAL: BE IN CONSIDERATION SHORT-LIST BY NURTURING YOUR AUDIENCE Marketing Goals Commonly used metrics Recommended metrics Grow (loyal) audience base Expand your brand’s followers to serve as future prospective customers and for ongoing user research • Number of Followers / Subscribers • Segmented Follower / Subscriber cohorts Increase audience action / engagement Keep your audience warm for when they are ready to buy • Clicks, Click Through Rate (incl. opens, downloads, registrations, completes) • Social actions (e.g. Likes, Shares, Comments) • On-page engagement (e.g. time on site, bounce rate) • Same … but do not use for ‘marketing performance’ reporting; instead use them for: ✓ Content optimization (e.g. via A/B testing) ✓ Troubleshooting underperforming campaign *Metrics lists are illustrative only and non-exhaustive Vanity metrics
Which word resonates with the audiences on LinkedIn? Version A: “Guide” Version B: “ebook” 90% Higher CTR
Use Optimization metrics to find problems in campaigns Below Average CTR Clicks Engaged Members Hypothesis: Our content isn’t valuable Hypothesis: Our updates are not well constructed Clicks Per Engaged Member Hypothesis: We are not providing engaged members with enough new content Impressions Reach Hypothesis: We are not reaching the right audience Impression Frequency Hypothesis: Our target audience has not been adequately nurtured Hypothesis: We are reaching the wrong audience too frequently
Map marketing activities and metrics to business goals Acquire (paying) customers NURTURE REACH ACQUIRE 2 3 Make my brand known to the right target audience Be in audience’s consideration short-list by nurturing them 1
would you choose the cheapest car on the market? SHOW OF HANDS If you were in charge of choosing the ‘company car’,
If the cheapest vehicle is not the best choice for the company car … (i.e. return on investment ) Then why is the cheapest lead the best ROI for your marketing spend?
True business success is about quality, not only quantity CPL ≠ ROI 𝐶𝑃𝐿 = 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝑆𝑝𝑒𝑛𝑑 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐿𝑒𝑎𝑑𝑠 𝑅𝑂𝐼 = 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝑠𝑝𝑒𝑛𝑑 FOCUS ON REVENUE NOT JUST COST
What is the most important question for your business? It’s simple question: Was our marketing campaign PROFITABLE or not?
Customer acquisition metrics aligned to business goals BUSINESS GOAL: ACQUIRE (PAYING) CUSTOMERS Marketing Goals Commonly used metrics Recommended metrics Generate Leads Capture leads for sales team follow-up • Number of Leads (MQL, SQL) • Cost Per Conversion / Lead • Qualify leads through a Lead scoring model (based on lead quality demographics) • LTV : CAC ratio Customer Acquisition Cost (CAC), relative to revenue earned from that customer Convert / Retain customers Generate customer sign-ups, renewals, and upgrades • Cost Per Conversion / Lead • Transaction value / revenue • Churn • Customer Lifetime Value (LTV) *Metrics lists are illustrative only and non-exhaustive
Test your scoring model with historical data Select your scoring criteria Determine your ideal target (lead) Align sales and marketing objectives Steps to establish a Lead Scoring Model EXAMPLE LEAD SCORING MODEL Source: Marketo Definitive Guide to Lead Scoring (https://www.marketo.com/definitive-guides/lead-scoring/)
Lead Scoring Criteria EXAMPLE LEAD SCORING MODEL • Title / Role / Seniority • Company info (industry, size, revenue growth) • Relationship (potential vs. key, complementary products used, budget) Explicit Demographics Encouraging Behaviours Discouraging Behaviours • Online/Live demo/trial • Phone calls / guides / blogs / webinars • Roadshow / events /surveys / community • Email unsubscribe • Non-product visit (e.g. career page, press room) • No website activity for long period • Negative social comment Source: Marketo Definitive Guide to Lead Scoring (https://www.marketo.com/definitive-guides/lead-scoring/)
Example Lead Scoring Model EXAMPLE LEAD SCORING MODEL DEMOGRAPHIC BEHAVIOUR SCALE Criteria Score Criteria Score Critical (10-15 pts) • Title: Dir / VP • Co. Revenue: >$500M +12 +10 • Visits pricing pages • Downloads reviews +10 +12 Important (5-9 pts) • Title: Manager • Co. Revenue: $100M - $499M +7 +5 • Watches detailed demo • Heavy web activity +10 +5 Influencing (1-4 pts) • Title: Analyst • Co. Revenue: <$100M +4 +1 • Downloads any white paper • Watches any video +4 +2 Discouraging (negative) • Title: Student -5 • Email unsubscribe • Negative comment -10 -4 Source: Marketo Definitive Guide to Lead Scoring (https://www.marketo.com/definitive-guides/lead-scoring/)
Scoring sample output EXAMPLE LEAD SCORING MODEL SCORE 50+ 25-49 0-24 <0 50+ 25-49 0-24 <0 LEAD SCORE PRIORITY ACTION 0-24 Suspect Nurture 25-49 Lead Move to marketing qualification screen or nurture with buy cycle content 50+ Sales Ready Send to Sales for qualification Source: Marketo Definitive Guide to Lead Scoring (https://www.marketo.com/definitive-guides/lead-scoring/) Behaviour Demographic
Sample ROI calculator: Lead Generation VARIABLE VALUE DATA SOURCE A Advertising Spend 1,00,000 Campaign Reports B # of actions (e.g. clicks, lead forms) 1,000 Campaign Reports C Cost Per Action 100 A ÷ B D # of (unqualified) Leads generated 75 Your site / platform E % of Leads generated per action 7.5% D ÷ B F # of MQLs 15 Marketing team data G % leads into MQLs 20% F ÷ D H # of SQLs 8 Sales team data I % leads into SQLs 11% H ÷ F J # of deals won from SQLs 2 CRM K % of SQLs closed / won 25% J ÷ H L Average (or actual) deal size 2,50,000 CRM M Revenue from advertising 5,00,000 J × L N ROI from advertising 500% M ÷ A AssumptionInput KPIsLegend: Calculation
No, this is not an easy journey CHANGE MANAGEMENT OF PEOPLE-PROCESS-TOOLS IS NEEDED Process Tools People
Summary of takeaways • Brand Awareness - Use survey and engagement-based indicators to measure change in brand perception • Vanity Metrics - Use content optimization and troubleshoot, not reporting ‘ROI’ • Focus on Quality, not only Quantity – CPL ≠ ROI, use a Lead Scoring Model (in lieu of revenue data) • Align with sales – speak the same language, go beyond MQL dumps, and get actual sales data from Sales/Finance • Change Management – you need to drive change across People- Processes-Tools to make this a reality
Four-minute mile: Roger Bannister ONCE YOU BELIEVE SOMETHING IS POSSIBLE, YOU CAN MAKE IT REAL • 1940s = 4:01 min • 6 May 1954 = 3:59.4 (Roger Bannister) • 21 Jun 1954 = 3:57.9 (John Landy) • 1955 = 2 more people • 1956 = 6 more … • 1957 = 6 more …
Communicating ROI for digital marketing

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Communicating ROI for digital marketing

  • 1.
    Communicating ROI of contentmarketing Mukkul Dasgupta Head of Insights APAC @ LinkedIn Marketing Solutions
  • 2.
    “I don’t understandhow you help me (personally) hit my goals” “You all look busy but I don’t what you’re doing” “Quality of leads is poor” “Quantity of good quality leads is low” “Customers are not familiar with our brand or products / services and that causes me to waste time in sales calls” “Why can’t you just pivot what you’re doing to help me close this deal now?” Objective How do we counter some of these objections?
  • 3.
    DOING good work= Clark Kent / Diana Prince COMMUNICATING that work = Superman / Wonder Woman
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    WHY DOESN'T YOURORGANIZATION MEASURE THE RETURN ON INVESTMENT (ROI) OF ITS CONTENT MARKETING EFFORTS? Why B2B Marketers Don't Measure Content Marketing ROI G O A L S & M E T R I C S No formal justification required We need an easier way to do this We don’t know how to do this Too time-consuming Other Unsure 38% 38% 27% 21% 23% 3%
  • 5.
    Always start fromthe end “What do senior executives care about?”
  • 6.
    What do seniorexecutives care about? Revenue & Profits How is marketing driving revenue and profits? CEO SALES VP CMO Revenue / Sales How is marketing generating demand and leads for my team? Optimizing impact How can I go from a cost-center to a revenue driver?
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    “If you can’tmeasure it, you can’t improve it.” P E T E R D R U C K E R
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    What do seniorexecutives care about? Revenue & Profits How is marketing driving revenue and profits? CEO SALES VP CMO Revenue / Sales How is marketing generating demand and leads for my team? Optimizing impact How can I go from a cost-center to a revenue driver?
  • 9.
    As a CEO,I would like to see … WHERE SHOULD I INVEST TO DRIVE REVENUE AND PROFITS? CEO MARKETING GENERATED SALES CLOSED DEAL SIZE TIME TO CLOSE ROI Marketing influenced revenue YES YES Rs. W A wks #% Sales owned revenue NO YES Rs. X B wks #% Marketing owned revenue YES NO Rs. Y C wks #% OVERALL Rs. Z D wks #%
  • 10.
    What do seniorexecutives care about? Revenue & Profits How is marketing driving revenue and profits? CEO SALES VP CMO Revenue / Sales How is marketing generating demand and leads for my team? Optimizing impact How can I go from a cost-center to a revenue driver?
  • 11.
    Sales & Marketingare often misaligned Sales & Marketing look at people through different lens Sales thinks about accounts and individuals, Marketing thinks about broad audiences Sales & Marketing work sequentially, not in coordination Sales is focused on moving prospects along the pipeline, whereas Marketing is focused on generating leads (and dumping them off). Sales & Marketing rely on different datasets Sales is focused on CRM, Marketing uses a large and fragmented marketing technology stack (all of which end up in Excel eventually)
  • 12.
    Source: Average LinkedIndata for large tech companies including: Amazon, Cisco, Dell-EMC, Google, HPE, IBM, Intel, Microsoft, Oracle, Salesforce from March to September 2017 (global impressions based on Sponsored Content, Off Platform & Sponsored InMail) 21M+ Members reached by Marketing only 34% of new sales relationships have been Influenced by Marketing 349k+ New Connections recorded by Sales Team Sales & Marketing are often misaligned
  • 13.
    Sales 10 minute Marketingupdate at Sales meetings 1-2 min KPI summary: • What is your Marketing Influenced revenue YTD/QTD • What is your pacing of your lead gen relative to your sales cycle 3-4 min Demand Management details • Statistics on handover of marketing leads to Sales vs. SLAs, including feedback on MQLs, response / closing times, attributes of better leads, etc. 2-3 min Anatomy of a 'real’ opportunity • Tell story of a specific account: company, leads generated, buying committee profiles, etc. • What was their journey: what actions were taken by both marketing & sales, how many days per step, what comments, etc. 1-2 min Q&A • Provide any updates from marketing, • Discuss improvements (e.g. where did SLAs break down & why), • Table joint decisions that need to be taken, etc. • What revenue has marketing influenced? • How am I pacing towards my quotas? • What is the quality of leads? • What actions do I need to take? What Sales cares about … As a Sales VP, I would like to know … WHERE ARE MY LEADS & DEMAND COMING FROM?
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    KPI Summary HOW AMI PACING TOWARDS MY QUOTA? x% YTD / QTD 0 10 20 30 40 50 60 70 80 90 100 Jan Mar May Jul Sep Nov Actual Target 0 100 200 300 400 500 600 700 800 900 1000 Jan Mar May Jul Sep Nov Actual Target Marketing Influenced Revenue MQL Pacing SQL Pacing
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    Demand management details QUANTITYOF LEADS: HOW DOES MARKETING’S ACTIVITIES SUPPORT ME? METRIC CURRENT PERIOD PREVIOUS PERIOD OUTREACH TIME OUTREACH SLA STATUS NOTES # of Marketing Qualified Leads (MQLs) Y Z # … … # of Sales Qualified Leads (SQLs) Y Z # … … # of Opportunities Won (Deals closed) Y Z # … … X X X n% n%
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    Marketing Qualified LeadsDemographics QUALITY OF LEADS Top performing Bottom performing Notes Industry • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • … Function • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • … Seniority • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • … Geography • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • … Other … • xyz (#%) • xyz (#%) • xyz (#%) • xyz (#%) • … • …
  • 17.
    Anatomy of anopportunity – leads MAKE THE LEADS ‘HUMAN’ Buying Committee • Name: … • Title: … • Division: … • Supportive: … • Notes: … • Name: … • Title: … • Division: … • Supportive: … • Notes: … • Name: … • Title: … • Division: … • Supportive: … • Notes: … • Name: … • Title: … • Division: … • Supportive: … • Notes: … Sales Rep: John Smith focused on LinkedIn account, US West Coast region • Showcase the quality of leads brought in and nurtured by Marketing • Consider entire Buying Committee and influencers, not only the Key Decision Maker • Highlight supportiveness and other notes with Sales input
  • 18.
    Anatomy of anopportunity – sales VISUALIZE JOURNEY OF A LEADSales Rep: John Smith focused on LinkedIn account, US West Coast region 2 4 12 2 18 4 4 6 4 2 2 6 6 6 4 2 6 6 2 8 2 6 4 2 1 2 2 6 4 4 2 0 5 10 15 20 25 30 35 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 #ofSales/MktgActions(linear) Outbound Profile View Inbound Profile View New Connection Saved Leads Saved Account Sent Message CRM Opportunity Created Deal Closed Sales Activity• Highlight sales journey of the account, e.g. • what steps / activities • how long / when • what were outcomes / feedback • Showcase ongoing nurturing and support by marketing to account’s sales journey Marketing Qualified Lead Sales Qualified Lead
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    Anatomy of anopportunity – sales HOW MARKETING SUPPORTS THAT JOURNEYSales Rep: John Smith focused on LinkedIn account, US West Coast region 8 4 22 6 38 12 12 2 6 1212 3 2 6 2 8 2 6 5 6 6 449 1045 587 552 15 57 75 195 111 1425 1586 1844 281 1 10 100 1000 10000 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 #ofSales/MktgActions(logarithmic) Sales Activity Marketing Clicks Marketing Impressions Awareness & Lead Gen Nurture Prospects ~70 Marketing activities per sales action supported deal close Sales Activity Deal Closed Marketing Qualified Lead Sales Qualified Lead CRM Opportunity Created • Highlight sales journey of the account, e.g. • what steps / activities • how long / when • what were outcomes / feedback • Showcase ongoing nurturing and support by marketing to account’s sales journey
  • 20.
    Marketing update Q&A HOWDO WE CONTINUE TO IMPROVE? • … • … Update • … • … Discuss • … • … Decide
  • 21.
    What do seniorexecutives care about? Revenue & Profits How is marketing driving revenue and profits? CEO SALES VP CMO Revenue / Sales How is marketing generating demand and leads for my team? Optimizing impact How can I go from a cost-center to a revenue driver?
  • 22.
    Principles to choosebetter ROI-linked marketing metrics Understand what makes your business profitable and how marketing activities drives those factors Get clear on business goals Good enough, ‘directional’ data is much better than precise data. Just do it! Perfection is failure Absolute figures in a B2B context are irrelevant less important Everything’s Relative Pick metrics that have a definable future target value that marketing activities can impact Know what you’re chasing Agree with sales which (proxy) KPIs they believe are most helpful in winning deals Partner with Marry sales
  • 23.
    As a CMO,I would like to … SHOW MY TEAM’S IMPACT & BE VIEWED AS A REVENUE DRIVER CMO NURTURE REACH ACQUIRE Acquire (paying) customers3 2 Be in ‘consideration short-list’ by nurturing your audience ROI can only be calculated at this stage (with sales transaction data). Everywhere else you’re only able to use proxy KPIs for value / ROI Make my brand known to the right target audience1
  • 24.
    Map marketing activitiesand metrics to business goals Acquire (paying) customers NURTURE REACH ACQUIRE 2 3 Make my brand known to the right target audience Be in the audience’s ‘consideration short-list’ by nurturing them 1
  • 25.
    Marketing Goals Commonlyused metrics Recommended metrics Grow Brand Awareness Ensure brand is associated with relevant products and services by the target audience. • Impressions, Traffic, Views, View time • Brand Lift • Target Audience Share of Voice Improve positive brand sentiment Improve the opinion of the brand among the target audience over time. • Likes / Shares / Comments • Brand Sentiment Own thought leadership for select topics Build a reputation as a trusted leader with industry expertise in specific topics that are strategic to your business and serve as a competitive differentiator. • Number of posts • Number of Followers • Topic Ownership & Engagement Brand awareness metrics (closer) aligned to business goals BUSINESS GOAL: REACH RIGHT AUDIENCE AND MAKE MY BRAND KNOWN TO THEM *Metrics lists are illustrative only and non-exhaustive
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    Brand Lift REACH: GROWBRAND AWARENESS
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    (Target Audience) Shareof Voice REACH: GROW BRAND AWARENESS
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    Topic Ownership &Engagement REACH: GROW BRAND AWARENESS Quiet Threats Laggards Thought Leaders Noise Makers
  • 30.
    Topic Ownership &Engagement REACH: GROW BRAND AWARENESS “No one ever got fired for buying IBM”
  • 31.
    Map marketing activitiesand metrics to business goals Acquire (paying) customers NURTURE REACH ACQUIRE 2 3 Make my brand known to the right target audience Be in the audience’s ‘consideration short-list’ by nurturing them 1
  • 32.
    ‘Vanity’ metrics areout of fashion now a days … “Vanity metrics can’t be linked to any meaningful business goals, aren’t actionable and therefore aren’t relevant. If you mention them in front of a CMO or CEO you will be laughed out of the room.” J a s o n M i l l e r , G l o b a l C o n t e n t M a r k e t i n g L e a d e r @ L i n k e d I n
  • 33.
    Use vanity metricsas indicators to optimize your future content, not to measure ROI. We should call them vanity metrics ‘Content Optimization Metrics’ … but that is because we use them incorrectly
  • 34.
    Audience engagement metricsaligned to business goals BUSINESS GOAL: BE IN CONSIDERATION SHORT-LIST BY NURTURING YOUR AUDIENCE Marketing Goals Commonly used metrics Recommended metrics Grow (loyal) audience base Expand your brand’s followers to serve as future prospective customers and for ongoing user research • Number of Followers / Subscribers • Segmented Follower / Subscriber cohorts Increase audience action / engagement Keep your audience warm for when they are ready to buy • Clicks, Click Through Rate (incl. opens, downloads, registrations, completes) • Social actions (e.g. Likes, Shares, Comments) • On-page engagement (e.g. time on site, bounce rate) • Same … but do not use for ‘marketing performance’ reporting; instead use them for: ✓ Content optimization (e.g. via A/B testing) ✓ Troubleshooting underperforming campaign *Metrics lists are illustrative only and non-exhaustive Vanity metrics
  • 35.
    Which word resonateswith the audiences on LinkedIn? Version A: “Guide” Version B: “ebook” 90% Higher CTR
  • 36.
    Use Optimization metricsto find problems in campaigns Below Average CTR Clicks Engaged Members Hypothesis: Our content isn’t valuable Hypothesis: Our updates are not well constructed Clicks Per Engaged Member Hypothesis: We are not providing engaged members with enough new content Impressions Reach Hypothesis: We are not reaching the right audience Impression Frequency Hypothesis: Our target audience has not been adequately nurtured Hypothesis: We are reaching the wrong audience too frequently
  • 37.
    Map marketing activitiesand metrics to business goals Acquire (paying) customers NURTURE REACH ACQUIRE 2 3 Make my brand known to the right target audience Be in audience’s consideration short-list by nurturing them 1
  • 38.
    would you choosethe cheapest car on the market? SHOW OF HANDS If you were in charge of choosing the ‘company car’,
  • 39.
    If the cheapestvehicle is not the best choice for the company car … (i.e. return on investment ) Then why is the cheapest lead the best ROI for your marketing spend?
  • 40.
    True business successis about quality, not only quantity CPL ≠ ROI 𝐶𝑃𝐿 = 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝑆𝑝𝑒𝑛𝑑 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐿𝑒𝑎𝑑𝑠 𝑅𝑂𝐼 = 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝑠𝑝𝑒𝑛𝑑 FOCUS ON REVENUE NOT JUST COST
  • 41.
    What is themost important question for your business? It’s simple question: Was our marketing campaign PROFITABLE or not?
  • 42.
    Customer acquisition metricsaligned to business goals BUSINESS GOAL: ACQUIRE (PAYING) CUSTOMERS Marketing Goals Commonly used metrics Recommended metrics Generate Leads Capture leads for sales team follow-up • Number of Leads (MQL, SQL) • Cost Per Conversion / Lead • Qualify leads through a Lead scoring model (based on lead quality demographics) • LTV : CAC ratio Customer Acquisition Cost (CAC), relative to revenue earned from that customer Convert / Retain customers Generate customer sign-ups, renewals, and upgrades • Cost Per Conversion / Lead • Transaction value / revenue • Churn • Customer Lifetime Value (LTV) *Metrics lists are illustrative only and non-exhaustive
  • 43.
    Test your scoring model with historical data Selectyour scoring criteria Determine your ideal target (lead) Align sales and marketing objectives Steps to establish a Lead Scoring Model EXAMPLE LEAD SCORING MODEL Source: Marketo Definitive Guide to Lead Scoring (https://www.marketo.com/definitive-guides/lead-scoring/)
  • 44.
    Lead Scoring Criteria EXAMPLELEAD SCORING MODEL • Title / Role / Seniority • Company info (industry, size, revenue growth) • Relationship (potential vs. key, complementary products used, budget) Explicit Demographics Encouraging Behaviours Discouraging Behaviours • Online/Live demo/trial • Phone calls / guides / blogs / webinars • Roadshow / events /surveys / community • Email unsubscribe • Non-product visit (e.g. career page, press room) • No website activity for long period • Negative social comment Source: Marketo Definitive Guide to Lead Scoring (https://www.marketo.com/definitive-guides/lead-scoring/)
  • 45.
    Example Lead ScoringModel EXAMPLE LEAD SCORING MODEL DEMOGRAPHIC BEHAVIOUR SCALE Criteria Score Criteria Score Critical (10-15 pts) • Title: Dir / VP • Co. Revenue: >$500M +12 +10 • Visits pricing pages • Downloads reviews +10 +12 Important (5-9 pts) • Title: Manager • Co. Revenue: $100M - $499M +7 +5 • Watches detailed demo • Heavy web activity +10 +5 Influencing (1-4 pts) • Title: Analyst • Co. Revenue: <$100M +4 +1 • Downloads any white paper • Watches any video +4 +2 Discouraging (negative) • Title: Student -5 • Email unsubscribe • Negative comment -10 -4 Source: Marketo Definitive Guide to Lead Scoring (https://www.marketo.com/definitive-guides/lead-scoring/)
  • 46.
    Scoring sample output EXAMPLELEAD SCORING MODEL SCORE 50+ 25-49 0-24 <0 50+ 25-49 0-24 <0 LEAD SCORE PRIORITY ACTION 0-24 Suspect Nurture 25-49 Lead Move to marketing qualification screen or nurture with buy cycle content 50+ Sales Ready Send to Sales for qualification Source: Marketo Definitive Guide to Lead Scoring (https://www.marketo.com/definitive-guides/lead-scoring/) Behaviour Demographic
  • 47.
    Sample ROI calculator:Lead Generation VARIABLE VALUE DATA SOURCE A Advertising Spend 1,00,000 Campaign Reports B # of actions (e.g. clicks, lead forms) 1,000 Campaign Reports C Cost Per Action 100 A ÷ B D # of (unqualified) Leads generated 75 Your site / platform E % of Leads generated per action 7.5% D ÷ B F # of MQLs 15 Marketing team data G % leads into MQLs 20% F ÷ D H # of SQLs 8 Sales team data I % leads into SQLs 11% H ÷ F J # of deals won from SQLs 2 CRM K % of SQLs closed / won 25% J ÷ H L Average (or actual) deal size 2,50,000 CRM M Revenue from advertising 5,00,000 J × L N ROI from advertising 500% M ÷ A AssumptionInput KPIsLegend: Calculation
  • 48.
    No, this isnot an easy journey CHANGE MANAGEMENT OF PEOPLE-PROCESS-TOOLS IS NEEDED Process Tools People
  • 49.
    Summary of takeaways •Brand Awareness - Use survey and engagement-based indicators to measure change in brand perception • Vanity Metrics - Use content optimization and troubleshoot, not reporting ‘ROI’ • Focus on Quality, not only Quantity – CPL ≠ ROI, use a Lead Scoring Model (in lieu of revenue data) • Align with sales – speak the same language, go beyond MQL dumps, and get actual sales data from Sales/Finance • Change Management – you need to drive change across People- Processes-Tools to make this a reality
  • 50.
    Four-minute mile: RogerBannister ONCE YOU BELIEVE SOMETHING IS POSSIBLE, YOU CAN MAKE IT REAL • 1940s = 4:01 min • 6 May 1954 = 3:59.4 (Roger Bannister) • 21 Jun 1954 = 3:57.9 (John Landy) • 1955 = 2 more people • 1956 = 6 more … • 1957 = 6 more …