Why You Need to Speak the Language of Marketing Performance
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In this presentation we define key terms like “data”, “measure”, “metric,” and “KPI”, and explain why best-in-class marketers are better at knowing what metrics matter.
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Why You Need to Speak the Language of Marketing Performance
- 1. Why You Need to Speak the Language of Marketing Performance Founder & President laurap@visionedgemarketing.com @laurvem Dir, Product Marketing jeffc@origamilogic.com @hitechmktg
- 2. About Origami Logic Helping Global Brands Master Their Marketing Performance Tier-1 Investors Experienced Leaders & Domain Expertise Rapid Deployment & Time-to-Value Daily Insights and Optimization Search and Organize with Dynamic Marketing Data Model Unify All Campaign Performance Data Our Platform
- 3. Improve and Prove the Value of Marketing Smarter, more relevant, influential, credible and strategically-minded marketing orgs More valued, effective, and measurable Marketing Improve market and product competitiveness and growth Make fact-based decisions regarding customers, markets, products and competitors Optimize marketing processes As the global pioneer of MPM, VisionEdge Marketing has a vision to transform marketing into Centers of Excellence. 100+ Customers, 250+ Engagements
- 4. The Imperative for Marketing Measurement “When asked to identify their strategic priorities for 2016, more organizations (53%) chose data-driven marketing with their top vote.” eConsultancy Quarterly Digital Intelligence Briefing: 2016 Digital Trends “Spending on marketing analytics will increase 66% in the next three years.” CMO Survey Report, Sponsored by Deloitte, AMA & Duke School of Business, Feb 2016 …our review of more than 400 diverse client engagements from the past eight years, across industries and regions, found that an integrated analytics approach can free up some 15 to 20 percent of marketing spending. “Using marketing analytics to drive superior growth”, McKinsey & Company, June 2014 4
- 5. Data, Measures, Metrics, KPIs…Oh my Data = Information Structured or Unstructured (Big Data) Measure – quantity or quality Measure Metric Metric – Standard Of Measure Key Performance Indicator © VisionEdge Marketing, Inc. Proprietary and confidential. Not for redistribution.
- 6. Giving Life to the Terms Data Measure Metric KPI SIC Code Number of Customers in a Segment Average Order Value Customer Lifetime Value What a website visitor downloaded Number of Net New Qualified Opportunities Marketing Contribution to Pipeline Share of Brand Preference
- 7. 5.90 5.40 5.10 5.40 6.90 6.50 6.80 7.10 7.90 7.90 8.40 8.30 2013 2014 2015 2016 Campaign Producers Sales Enablers Value Creators © VisionEdge Marketing, Inc. Proprietary and confidential. Not for redistribution.7 Best-in-Class Marketers Know What Metrics Matter Confidence They Know the Metrics Leaders Care About 1=Not confident they have the right metrics; 10=Extremely confident Source: VisionEdge Marketing 2016 MPM Benchmarking Study Abbreviated Summary - How to Make Progress on Your Marketing Excellence Journey
- 8. VEM’s Metrics Continuum © VisionEdge Marketing, Inc. Proprietary and confidential. Not for redistribution.
- 9. Analytics, Models, Dashboards too Analytics - the discovery, interpretation, and communication of meaningful patterns in data. Models – Use algorithms (math) that simulates how something works in marketing Dashboards - provides a view of critical performance against goals at a glance Data – values © VisionEdge Marketing, Inc. Proprietary and confidential. Not for redistribution.
- 10. • Data Science – combines math, statistics and computer science. In the context of marketing, data science is applied to find ways to improve marketing results to business objectives. © Origami Logic, Inc. Proprietary and confidential. Not for redistribution.10 The Role of Data Science Article – “Does your marketing team need a data scientist?” http://www.gartner.com/smarterwithgartner/does-your-marketing-team-need-a-data-scientist/
- 11. This is Hard Work! Why Do It? © Origami Logic, Inc. Proprietary and confidential. Not for redistribution.11
- 12. 27% 45% 53% 68% 93% 92% 2015 2016 Campaign Producers Sales Enablers Value Creators © VisionEdge Marketing, Inc. Proprietary and confidential. Not for redistribution.12 Best-in-Class Marketers Excel at Measuring Their Contribution to the Business % Agreement: Marketing is good at measuring their contribution to achieving business goals Source: VisionEdge Marketing 2016 MPM Benchmarking Study Abbreviated Summary - How to Make Progress on Your Marketing Excellence Journey
- 13. CEOs Champion Value Creators MPM Persona Most Consistent Critic Most Consistent Champion Value Creators BU Leader CEO Sales Enablers CFO Sales Campaign Producers CFO Sales © VisionEdge Mareting, Inc. Proprietary and confidential. Not for redistribution.13 Source: 2016 MPM Benchmarking Study Abbreviated Summary - How to Make Progress on Your Marketing Excellence Journey
- 14. 6.70 5.30 4.80 5.20 7.00 7.00 6.70 6.80 8.10 8.00 7.90 8.50 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Sales BU Leader CFO/Finance CEO Value Creators Sales Enablers Campaign Producers © VisionEdge Marketing, Inc. Proprietary and confidential. Not for redistribution.14 Value Creators Get Wide Support Marketing’s Credibility 1=Very Poor; 10=Very High Source: VisionEdge Marketing 2016 MPM Benchmarking Study Abbreviated Summary - How to Make Progress on Your Marketing Excellence Journey
- 15. Access this white paper and more information on Origami Logic in the Resources section of our website - https://resources.origamilogic.com Thank You! Download the FREE 2016 MPM Benchmarking Study Abbreviated Summary - How to Make Progress on Your Marketing Excellence Journey @ http://visionedgemarketing.com/enhance-your-know-how-with-white- papers/
Editor's Notes
- Welcome to our video primer on marketing dashboards. [housekeeping items – recorded, how to contact, more info, etc.]
- Pioneer of marketing measurement and analytics. Origami Logic is a marketing analytics company focused on helping the largest global brands master the art and science of their marketing performance. Our mission is to empower organizations to do their best marketing by providing the most timely and accurate way to capture, explore, understand, and optimize marketing results.
- Jeff’s opening
- Jeff – so we all know Marketers need to be more fluent in metrics - “in conversations with customers and prospects we often find that marketers and members of the business team are using terms such as data, measures, metrics and KPIs differently. Is that something you observe as well?” Laura – “ we do. In the wise words of Voltaire who said, “If you wish to converse with me define your terms.” Precision in language is important, especially when we’re talking about the topics of data and marketing performance. Let’s define the terms and then give some business examples.
- As you can see these are very related. Before you know it, the number of measures, metrics and KPIs can become overwhelming. Best-in-Class Marketers know how to select the right metrics. We’ve conducted a Marketing Performance Benchmark study for the15 years and we are now able to organize Marketers into 3 Personas based on how well they can demonstrate their contribution to the business. Value creators, Marketers who earn an A (90 or greater from the C-Suite); Sales Enablers, Marketers who earn a B (80-89) and the rest of the pack – Campaign Producers. These Groups have very different competencies when it comes to Metrics.
- This group has figured out a way to organize their metrics and one of the key differentiators is their use of Metrics/Data Chains as the foundation for their dashboard – another great topic for a conversation. Our Metrics Continuum is one popular classification approach.
- As you can imagine, there is an data and analytics play an important role in measurement and metrics, which are the building blocks of a dashboard. Let’s define these terms too.
- Data is the DNA. Analytics are applied to the DNA and can be used to create Models, such as pricing models, segmentation models, predisposition to purchase models, customer risk models, and so on. They can also be used to Create Dashboards. JC - Now let’s tackle some of the less concretely defined terms that marketers and vendors use often today. LP – Analytics is a broadly used term and applies to everything from Excel spreadsheets to enterprise business intelligence platforms. Essentially, it’s the process of evaluating the data in some means (list, charts, agorithms) to gain insight or meaning. So, it could be simple math to calculate a sum total or very elaborate models to infer impact. JC – B2C marketing has been using Media Mix Modeling for years and attribution modeling is certainly a hot topic today. Let’s help them understand what we mean by a model. Take, for example, attribution. Attribution uses a model to apply weighting to different channels. The most simple was ”last touch” where 100% of the weight was attributed to the last touch before purchase. There are “W” models that apply heavy weighting to the beginning, middle and end touches (shaped like a “W”) or “U”-shaped that focus on the first and last touches. More sophisticated models are emerging that try to correlate importance based on the data coming in rather than a pre-determined shape. But just like you might build a model of car to see how it behaves in a wind tunnel, a marketing model is created to help you improve how you market…what channels you use or the sequence of touches you could get from a customer journey model. LP – I think everyone has a visual image of a dashboard and fundamentally understands why they exist. What I’ve found, however, is most marketing organizations are extremely challenged in defining the most important things to show on a dashboard. Those things that truly tie marketing efforts to business results. JC – That’s right. We’re going to dedicate our next mini-session to the steps someone should take to build a great dashboard. Along those lines, we find that defining what you want to see on a dashboard is a key step but marketers also struggle with actually pulling together the data and mashing it together to get the level of insight needed to tie marketing to business results.In other words, it’s relatively easy to find and aggregate clicks and opens, but showing engagement and correlation to revenue is quite another story...but we’ll reserve that discussion for the next session.
- JC – Another related term is data science. That’s certainly being held up as a great new career and appears to be a fundamental skill for advanced measurement going forward. It has a sister term as well...Big Data. LP – That’s right. Data scientists really exist in the realm of modeling and predictive analytics. They take big volumes of data and try to develop models or tease out patterns and information that can lead to optimizations for marketing. Data Science can also show up in software solutions today. JC – Actually Origami uses data science for anomaly detection to help marketers find areas that are over or under performing. This is something we surface on dashboards to draw a marketer into a further investigation of the data. This is a lot of work, why do it?
- Jeff – comments and then conversation about why Marketers care Laura – 1. Make better decisions – from something as tactical to what content is preferred in what channel by which customers to something more strategic what next solution should be bring to market at what price and where is our best point of entry. 2. To mitigate risk. Such as which customers are at risk for switching? 3. To improve effectiveness and efficiencies. What marketing initiatives are having the greatest impact on acquiring net new customers? 4. To demonstrate Marketing’s contribution to the business. How much additional share of preference and impact on increased market share? How much additional share of wallet and increase on customer lifetime value? Jeff, does it really matter? Laura – well, let’s see what the data tells us
- In our next session we’ll talk about the value of dashboards which are a visual manifestation of this performance language.
- Call to action – VisionEdge - White Paper?? OL – Attribution white paper