master your metrics - tfm insights your metrics: an expert guide to marketing measurement and...
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Master Your Metrics: An Expert Guide To Marketing Measurement And Analytics
Ray Coppinger Senior Marketing Manager EMEA, Marketo @raycop
Page 2 © 2015 Marketo, Inc. Marketo Proprietary and Confidential
Marketo Company Overview
3,800 customers across 20+ industries in 36 countries
#1 independent marketing platform:
• Marketing software - built for marketers, by marketers
• Fastest growing marketing technology company
• Largest partner solution ecosystem
Top rated by Analysts including Sirius Decisions, Gartner, and Forrester
Marketing First • Helping marketers master the art and
science of digital marketing
• Unparalleled expertise
TOPICS
1. Trends in Marketing Measurement
2. Where Metrics Go Wrong
3. The Right Metrics: Revenue Cycle
4. The Right Metrics: Program Performance
5. Questions???
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Strength in Numbers
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Current Trends in Marketing Measurement
In a recent study of 478 of
CMOs and Senior marketers
worldwide carried out by the
Economist Intelligence Unit,
ONLY 21% of European
respondents said marketing is
currently measured in terms of
revenue impact. WWW.MARKETO.COM/NEXT-ERA “The Rise of the Marketer: Driving
Engagement, Experience and Revenue” The Economist Intelligence Unit,
commissioned by Marketo
Page 6 © 2015 Marketo, Inc. Marketo Proprietary and Confidential
Current Trends in Marketing Measurement
What will be your biggest
challenges over the next 12
months?
1. Sufficient budget (45%)
2. Measurement of marketing
ROI (28%)
3. Shift to digital marketing and
engagement (26%) WWW.MARKETO.COM/NEXT-ERA “The Rise of the Marketer: Driving
Engagement, Experience and Revenue” The Economist Intelligence Unit,
commissioned by Marketo
Page 7 © 2015 Marketo, Inc. Marketo Proprietary and Confidential
The Future of Marketing Metrics?
FROM TO
Efficiency Effectiveness
Brand Awareness Cost Metrics (Efficiency)
Overall Engagement Top-Line Revenue
In marketing measurement, effectiveness metrics trump efficiency metrics @marketo #TFMA2015
Where Metrics Go Wrong
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Vanity Metrics
“Sound” or “look” good and impress people, but don’t measure impact on revenue.
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Activity Metrics
Focus on what you do instead of what results and impact you have on generating revenue/pipeline.
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Cost Metrics
Frame marketing in terms of cost and spending instead of results and outcomes
Cost Per… Lead Opportunity Acquisition Conversio
The Right Metrics: Revenue Cycle (Funnel) Metrics
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The Revenue Cycle/Funnel
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A Revenue Cycle Model
Screenshot: Marketo Revenue Cycle Analytics
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Key Revenue Cycle/Funnel Metrics
*Opps. is bigger than SQLs because includes outbound and partner referrals
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Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.
Key topic areas: • Balance (Reach) • Flow • Conversion • Velocity Trends over time
Screenshot: Marketo Revenue Cycle Analytics
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Marketing Credibility with Accurate Forecasts
Get The “Definitive Guide to Marketing Metrics & ROI”
http://marketo.com/DG2MM
A trusted forecast is the single most important step to make marketing a revenue driver, not a cost center #TFMA2015
The Right Metrics: Program Performance Metrics
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Why is Measuring Marketing ROI Hard?
• Multiple touches. Seven touches needed to convert a cold lead into a sale • Multiple influencers. Typical buying committee has 5-21 people
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Source: 2013 Lenskold Group 2013 Lead Generation Marketing Effectiveness Study
Ways that Companies Measure Program ROI
Single Touch Attribution First or Last
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Single Touch Attribution: First Touch
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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Single Touch Attribution: First Touch
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Page 24 © 2015 Marketo, Inc. Marketo Proprietary and Confidential
Single Touch Attribution: First Touch
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Inbound and Web creates the best leads by far: high conversion, high velocity
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Single Touch Attribution: First Touch
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Sponsored Email builds the database, but low conversion
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Single Touch Attribution: First Touch
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Webinar, tradeshow, PPC, and virtual tradeshow are top paid TOFU
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Single Touch Attribution: First Touch
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Paid Social & Display Ad drive brand and amplify inbound as well
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Single Touch Attribution: First Touch
Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Average days to Opportunity: 327 days
Multi-Touch Attribution
Multi-touch attribution gives marketers more insight into the full funnel @marketo #TFMA2015
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Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
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Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
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Example: Multi-Touch Attribution
A deal worth £100,000 recently closed. Three people were involved in the deal: • Person A attended Webinar A and Trade Show B • Person B attended Trade Show B • Person C was sent Email C
£100,000 Revenue
£25,000 £25,000 £25,000 £25,000
Webinar A £25,000
Tradeshow B £50,000
Email C £25,000
Page 33 © 2015 Marketo, Inc. Marketo Proprietary and Confidential
Source: Marketo Revenue Cycle Analytics, Apr 2014 * Percentage of all programs in channel that achieve MT Ratio > 5
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Source: Marketo Revenue Cycle Analytics, Apr 2014 * Percentage of all programs in channel that achieve MT Ratio > 5
Inbound + Nurture = 58% of (MT) Pipeline Paid Programs = 42% of (MT) Pipeline
Page 35 © 2015 Marketo, Inc. Marketo Proprietary and Confidential
Source: Marketo Revenue Cycle Analytics, Apr 2014 * Percentage of all programs in channel that achieve MT Ratio > 5
(MT) Ratio = Pipeline / Investment >10 is Great and <5 is Fail
Sponsored Email = 12.8, Tradeshow = 10.6, PPC = 13.0, Webinars = 25.4, Field Events = 6.6, Content Syndication
7.7
Page 36 © 2015 Marketo, Inc. Marketo Proprietary and Confidential
Source: Marketo Revenue Cycle Analytics, Apr 2014 * Percentage of all programs in channel that achieve MT Ratio > 5
% Programs with MT Ratio > 5 e.g. Tradeshow has good average but 49%
programs “fail”
Questions?
Email: [email protected] Twitter: @Marketo @raycop