The document discusses evaluating multi-channel marketing investments for B2B companies. It describes how most B2B marketers act as "conductors" of diverse marketing activities. Historically, spending has grown on activities like catalogs, telemarketing, and online marketing. The document provides examples of how to measure various offline and online marketing channels using common metrics like orders, sales, costs, and ROI. It also presents a case study of how one B2B catalog company measured and incentivized activities including inbound calls, outbound telemarketing, relationship sales, email programs, search engine marketing, and affiliates. The goal is to effectively allocate limited marketing budgets across all channels.

1. Evaluating Your Multi-channel Marketing Investments ECMOD London, Oct 6-7th, 2010 Terry Jukes - President B2B Direct Marketing Intelligence, LLC. www.b2bdmi.com

2. ECMOD 2010 www.B2BDMI.com 2 We Are “Conductors”! Most B2B marketers today are “conductors” of their multi-channel “orchestra”. “Conducting” has become increasingly complicated with many “new instruments”. Historically, spending on outbound telesales has steadily grown. Recently online marketing expenditures have skyrocketed.

3. ECMOD 2010 www.B2BDMI.com 3 B2B Marketing Investments Typical B2B DM’ers invest in…. Catalog/solo/mailings Inbound sales & marketing Outbound sales & marketing Online Web presence/online catalog Paid search Organic search Email Other? WWW @

4. … Plus Other Marketing Investments Offline: Retail stores? PR? Sponsorships? Distribution deals? Field sales? Dealer networks? Wholesale? Online: 1. Webinars? 2. Podcasts? 3. Online videos? 4. Blogging? 5. Landing pages? 6. “Net gnat” brands? 7. Content ECMOD 2010 www.B2BDMI.com 4

5. ECMOD 2010 www.B2BDMI.com 5 How do we evaluate our various activities in a way that allows us to constantly adapt and re-balance our investments?

6. How do you effectively measure all your diverse activity with a common yardstick and effectively allocate your scarce marketing dollars? How do you move towards “real time, automated, customer driven, interactive, marketing spending”? Where do you start? ECMOD 2010 www.B2BDMI.com 6 Where To Begin?

7. What are some of the commonly used measurements? ECMOD 2010 www.B2BDMI.com 7

8. Common Campaign Measurements Orders # Sales $ Net RRs % New orders, sales, RRs. Incremental orders, sales, RRs. AOV, MOV Margin $,% Costs (fixed and variable) Contribution margin New site/name acquisition costs. Repurchase rates Retention LTV Others? ECMOD 2010 www.B2BDMI.com 8

10. Sales first 14 or 21 days…to forecast

11. Sales by product category

12. Performance vs. forecast (curve)

13. Yr/Yr results

14. Merge/purge results, match back results

15. Seed measurements-timeliness, quality

16. Marketing contribution

17. Others?ECMOD 2010 www.B2BDMI.com 9 Mail Measurements: Catalog, Solo Mail

18. By Dept. Sales, calls, orders, total talk time, man-hours, payroll, $sales/$payroll, available time/paid time, data collection, up sell, retention, By Rep: Sales, calls, orders, UPO, LPO, available time, total talk time, avg talk time, quality (qualitative), data collection, up sell, retention Product test scores (training) Others? ECMOD 2010 www.B2BDMI.com 10 Inbound Phone Measurements

20. Net leads, Calls, connects, presentations, talk time, closes, rejects, Sales, AOV, MOV, UPO, LPO, coverage/penetration of file, returns, payroll/overhead to sales, retention/react.

21. By Rep.

22. Calls, connects, presentations, talk time, available time, closes, rejects, Sales, AOV, UPO, LPO, performance rank, returns, retention/react, quality.

23. Other?ECMOD 2010 www.B2BDMI.com 11 Outbound (Program) Telesales

24. By rep: # accts assigned, Q/Q, Y/Y acct growth/decline and comparison to control, site penetration (share of wallet), product category penetration, sales trends by site, calls, talk time, personalized faxes/emails sent/received, quotes presented, talk time, available talk time, paid time, $/names managed/mailed, AOV, LPO, UPO, personalization/custom order rate, name/site retention/order frequency….and the qualitative measures. By dept. All of the above, payroll/overhead to name, site and revenue growth. Other? ECMOD 2010 www.B2BDMI.com 12 Account Management Sales

26. Direct entry URL

27. Proprietary versus non-proprietary search terms

28. Organic listing or PPC

29. Links/Affiliates/Email => landing page

30. Pages opened, viewed, printed, time spent.

31. New visitors vs. repeat visitors.

32. Registrations…varying levels.

33. Total visits, page views, driver of visit?

34. Abandon shopping carts.

35. Other?ECMOD 2010 www.B2BDMI.com 13 Website Measurements WWW

36. For each activity, develop a summary of what you put out (costs, time) compared to what you get back and when/where. Where you don’t have hard numbers, assign a judgmental value or allocation. Come to a “bottom line” to be used for comparing and balancing your marketing investments. Continue to improve and refine your measurement system. Find ways to make it work versus reasons why it can’t. Avoid “silo” decision making. ECMOD 2010 www.B2BDMI.com 14 Measuring Multi-channel Marketing

37. ECMOD 2010 www.B2BDMI.com 15 What Could Another $100K Produce?

38. Is there an opportunity to improve matchback processes? Capture source data for online orders. Direct entry (branded)URL Proprietary or non-proprietary search term Click on search result or PPC ad. Capture sales rep code National acct rep and OBTM rep ECMOD 2010 www.B2BDMI.com 16 MatchBack PLUS

39. What marketing activity gets what % of the credit? Online order, direct entry URL, assigned rep? Online order, proprietary search, PPC click, no catalog mailed? Online order, non-proprietary search, catalog mailed? Online order, non-proprietary search, PPC, competitor’s catalog mailed. Inbound phone order, OBTM called? Online order from email campaign? ECMOD 2010 www.B2BDMI.com 17 Fractionally Allocate Orders

40. Situation: B2B Catalog with inbound, outbound (program and relationship) and online marketing efforts. How were various efforts measured, assessed, rewarded? ECMOD 2010 www.B2BDMI.com 18 Case Study – B2B Catalog

41. Inbound Sales Reps given training & quality standards Comparative performance posted and discussed Monthly bonuses for top quartile performers Sales, Gross Margin AOV Up-sell = units per order/UPO Cross-sell = lines per order/LPO Did not reward calls, call length, time connected, etc. ECMOD 2010 www.B2BDMI.com 19 Case Study – B2B Catalog

42. Program telemarketing Dials, talk time, file penetration, presentations coached with guidelines. Orders, sales and margins rewarded with percentage commission. Credit given for inbound orders received from customers pitched within 14 days. No extra credit given for callback (inbound)orders. ECMOD 2010 www.B2BDMI.com 20 Case Study – B2B Catalog

43. Relationship sales Approx. 500 assigned accounts with prior year orders/revenue/margin base established. Annual/quarterly goals set. New account and penetration of existing goals set. Monthly commission paid on incremental gross margin generated. All catalog and promotional expenses charged to the rep’s “P&L”. Ghost territory held for comparison ECMOD 2010 www.B2BDMI.com 21 Case Study – B2B Catalog

44. Catalog mailings Source code tracking with quarterly match back analysis. Catalogs had item pre-fix codes and some had special pricing ($.97) Direct entry and proprietary search term orders 80% allocated to the mailings. “White mail” 100% catalog ECMOD 2010 www.B2BDMI.com 22 Case Study – B2B Catalog

45. Email programs Triggered Order, Ship confirmation, Abandon Cart, New customer (name), Account details change, Lapsed customer Promotional Consumables continuity Seasonal products and annual events (i.e. back to school) New product introductions Cross-sell offers Non-seasonal events (i.e. oil spill) CTRs, conversion, promo products vs. other. ECMOD 2010 www.B2BDMI.com 23 Case Study – B2B Catalog @

46. SEM Non-proprietary search terms captured to order 80% credit to SEO, 20% site maintenance PPC Non-proprietary search terms, Click PPC -80% SEO, 20% PPC Click organic listing – 100% SEO Affiliates & Online advertising 100% to activity ECMOD 2010 www.B2BDMI.com 24 Case Study – B2B Catalog WWW

47. Thank you!Questions? Terry Jukes - President B2B Direct Marketing Intelligence LLC www.B2BDMI.com