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Using Metrics to Build Marketing's Credibility
1.
2. Using the Right Metrics
to Build Marketing's
Credibility
Marketo's Secret Sauce
3. Hi, I’m Jon Miller
VP Marketing and Co-Founder, Marketo
1. My first child was born the
same month that we incorporated Marketo
2. Born in Ethiopia
3. Undergraduate degree in Physics at
Harvard
4. I have a top secret “Q” clearance from DOE
@jonmiller
5. What Profits Can Be Generated With
10% More Budget?
12%
20%
44%
15%
9%
Improve profits by
more than 20%
Improve profits by 10%
to 20%
Improve profits up to
10%
No major change in
profits generated
Don't Know
#1 Answer:
Don’t Know
Source: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study
6. When Metrics Take Away Credibility
Vanity Metrics
Sound good and
impress people, but
don’t measure impact
on revenue or
profitability
Activity Metrics
Measure what you do
instead of what
results and impact
you have
7. When Metrics Take Away Credibility
Cost Metrics
Frame marketing in
terms of cost and
spending instead of
results and outcomes
8. Metrics That Give Marketing Power
“Speak the Language of Business”
Revenue Cycle
and Forecasts
Aggregate impact on
company revenue;
pipeline
performance;
predictive forecasts
9. Metrics That Give Marketing Power
“Speak the Language of Business”
Program
Performance
Incremental revenue
contribution and ROI
of individual
marketing programs
21. Key topic areas:
• Balance (Reach)
• Flow
• Conversion
• Velocity
Filter/Drill into
data, e.g. by
Program Type,
Business Unit,
Geography, etc.
Screenshot: Marketo Revenue Cycle Analytics
Trends over time
22. Use Metrics to Set & Justify Budgets
3%
20,000
$33/ea
140,000
Existing
Active
Targets
320
Sales
Leads
1,050
from DB
.75%
75%
10%
$2,100/ea
New
Opps
240
820
Existing
Opps
New
Outbound
Opps
10%
inactive
/ month
105
7%
25%
40,000 /
month
(900K DB
Total)
19%
Wins
New
Targets
Contacted
from
New
600
80%+ sales leads
from database
Marketo metrics: your stage definitions may vary
25%
90
380
Existing
Outbound
Opps
10%
60
Wins
Inbound /
Programs
New
Names
26. Why Measuring Return is Hard
• Multiple touches. Seven touches
needed to convert a cold lead into a
sale
• Multiple influencers. Typical buying
committee has 5-21 people
27. Ways that Companies Handle MultiTouch + Multi-Influencer
• 20%: No tracking
• 45%: Single Attribution
• 21%: Attribute Across Multiple Programs and
People
• 11%: Test and Control Groups
• 3%: Market Mix Modeling
Source: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study
28. Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
29. Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
30. Example: Multi-Touch Attribution
A deal worth $100,000 recently closed.
Three people were involved in the deal:
• Person A attended Seminar A and Trade Show B
• Person B attended Trade Show B
• Person C was sent Direct Mail C
$100,000 Revenue
$25,000
Seminar A
$25,000
$25,000
$25,000
Tradeshow B
$50,000
$25,000
Direct Mail C
$25,000
34. Planning for Marketing Measurement
Measure ROI to find not just what
works, but what works better.
Establish Goals
and ROI Estimates
Up-Front
Design Programs
to Be Measurable
Focus on the
Decisions that
Improve ROI
36. Marketing Forecasts
• Where the CSO lacks
“bottom-up” visibility,
marketing forecasts can
fill the void
• Marketing has longterm view and visibility
into the early stages of
the revenue cycle
Traditional Marketing Forecast
Highly Accountable Marketing Forecast
The market will grow by an estimated
4.2% overall and by 5.1% in the Western
region.
Marketing will generate an incremental
30 new deals worth $4.0 million of
bookings that are not currently in the
sales forecast.
37. Forecasting Conversion Over Time
• Predict conversions from one stage to another over time
• One model per transition per lead type
• Create plans / forecasts about future
Marginal Conversion
Cumulative Conversion
70
2,000
1,800
60
50.749x-0.571
y=
R² = 0.4301
50
1,600
1,400
40
30
1,000
20
y = 994.2x0.1352
R² = 0.9551
1,200
600
800
400
10
200
0
3
13
23
33
43
53
63
73
3
13
23
33
43
53
63
73
38. Power and Credibility From Forecasting
Get The “Definitive Guide to Marketing Metrics & ROI”
http://bit.ly/DG2MM
39. Key Takeaways
• Reporting is less important than DECISIONS
that improve ROI
• Focus on financial metrics that matter to the
CFO (profit, cash, revenue)
• Avoid cost and spend metrics – focus on
investment and return
• A trusted marketing forecast is the single most
important step to make marketing a revenue
driver, not a cost center
