metrics and analytics workshop : how to harness the power of data to build marketing credibility

© 2014 Marketo, Inc. Marketo Proprietary and Confidential

Metrics and Analytics Workshop

How to Harness the Power of Data to Build Marketing Credibility

© 2014 Marketo, Inc. @jonmiller

Hi, I’m Jon MillerVP Marketing and Co-Founder, Marketo

@jonmiller

1. My first child was born the same month that we incorporated Marketo

2. Born in Ethiopia3. Undergraduate degree in Physics at Harvard4. I have a top secret “Q” clearance from DOE


Topics

• Building Marketing Credibility

• The Right Metrics

• Revenue Metrics• Marketing Program

Performance


Quick Housekeeping

• Chat box is available if you have any questions

• There will be time for a Q&A at the end • We will be recording the webinar for

future viewing• All attendees will receive a copy of the

slides/recording • Twitter hashtag: #Marketo


12%

20%

15%

9%

44%

Improve profits by more than 20%Improve profits by 10% to 20%Improve profits up to 10%No major change in profits generatedDon't Know

What Profits Can Be Generated With 10% More Budget?

#1 Answer:Don’t Know

Source: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study


When Metrics Take Away Credibility

Vanity MetricsSound good and impress people, but don’t measure impact on revenue or profitability

Activity MetricsMeasure what you do instead of what results and impact you have


When Metrics Take Away Credibility

Cost MetricsFrame marketing in terms of cost and spending instead of results and outcomes


Metrics That Give Marketing Power“Speak the Language of Business”

Aggregate impact on company revenue; pipeline performance; predictive forecasts

Revenue Cycle and Forecasts


Metrics That Give Marketing Power“Speak the Language of Business”

Incremental revenue contribution and ROI of individual marketing programs

Program Performance


Revenue Cycle Metrics


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Marketo’s Revenue Cycle

TOFU MOFU

Opportunity CustomerLead

Sale

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ad

Nurturing Database

BOFU


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Sale

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Nurturing Database

Exposed to us via content, brand, or word of mouth


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Sale

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Nurturing Database

Feels a relationship and trust with us


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Sale

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Nurturing Database

Names are just names.


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Sale

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Nurturing Database

Meaningful interaction with us


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Sale

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Nurturing Database

Meaningful interaction and qualified demographics

Nurture until ready for next step


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Nurturing Database

Marketing qualified lead (score > 100) – SDR reach-out


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Qualified as sales-ready by SDR


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Accepted and actively worked by sales


Revenue Cycle Modeler

Screenshot: Marketo Revenue Cycle Analytics


Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.

Key topic areas:• Balance (Reach)• Flow• Conversion• Velocity Trends over time



Use Metrics to Set & Justify Budgets

New Targets

60,000

InventoryOf ActiveTargets

131,000

New MQLsScore>100

23,00015.3%

Inventory of Active MQLs

10.5% 20,000

New Opps*

1,000 6 Month Created Opp Inv.

2,000

270

*Opps is bigger than SQLs because includes outbound and partner referrals

SDR capacity driven

Inb

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/ P

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120,000(900K DB Total)

New Names

New SQLs

922

2.4%

1.9%

75%

Win

s35% win


Marketing Forecasts

Get The “Definitive Guide to Marketing Metrics & ROI”http://marketo.com/DG2MM

http://bit.ly/DG2MM


Program Performance


Ways that Companies Measure Program ROI

• 20%: No tracking• 45%: Single Attribution • 21%: Attribute Across Multiple Programs and

People• 11%: Test and Control Groups• 3%: Market Mix ModelingSource: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study


Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.


Accurately Tracking “Investment” vs Budget


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


Track All Touches Across People



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 $25,000 $25,000 $25,000

Seminar A$25,000

Tradeshow B$50,000

Direct Mail C$25,000


Screenshot: Marketo Revenue Cycle Analytics (actual data)


Source: Marketo Revenue Cycle Analytics, Nov 2013* Percentage of all programs in channel that achieve MT Ratio > 5

% Above Min*

89%

41%

75%

57%

66%10.4

73%

67%

76%


Example: Test and Control

Source: Lenskold Group


Planning for Marketing MeasurementMeasure 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


Tweetable Takeaways & Q&A

1. Reporting is less important than DECISIONS that improve ROI

2. Focus on financial metrics that matter to the CFO (profit, cash, revenue)

3. Avoid cost and spend metrics – focus on investment and return

4. A trusted marketing forecast is the single most important step to make marketing a revenue driver, not a cost center

@jonmiller

metrics and analytics workshop : how to harness the power of data to build marketing credibility

Technology

marketing results

marketing budget

marketing performance

marketing investment

marketo proprietary

pursuing metrics

wrong metrics

im jon millervp marketing