Ian Lurie
CEO Portent, Inc @portentint
DEALING WITH ROI RAGE Tying KPIs to Marketing Strategy and Tactics
Speaker Photo
(2.5” Square)
@PORTENTINT
My company: Portent, Inc Me, on twitter: @portentint
@PORTENTINT
http://portent.co/roirage
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THIS IS ABOUT WHAT’S POSSIBLE
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4 THINGS ABOUT ME
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I MAJORED IN HISTORY
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I SWEAR TALK FAST
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I LOVE THESE ANIMALS
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I’VE GOT ISSUES
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EXPLODING HEAD SYNDROME
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IT’S A TUMOR
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IT’S YOUR RELATIONSHIP W/ YOUR
INNER SELF
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we might want to do some content
promotion and retargeting…
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ok, but what’s the ROI?
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write more white papers!
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but… but…
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BUDGET COMMON SENSE
(MAGNIFIED 1000X)
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EXPLODING HEAD SYNDROME
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O R AGE
IR
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top of funnel
bottom of funnel
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strategy
tactics
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assists
last click
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WE WANT THIS
CRM SITE
BEHAVIOR
TACTIC
GOAL
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WE GET THIS
CRM SITE
BEHAVIOR
TACTIC
GOAL
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IT’S IMPOSSIBLE DOABLE
CRM SITE
BEHAVIOR
TACTIC
GOAL
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CAPYBARA THERAPY, INC.
and how did that make you feel?
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BASIC
VALUATION
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HOW DO YOU KNOW WHAT A CAMPAIGN IS WORTH?
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DO THE MATH
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VALUE CUSTOMERS
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VALUE LEADS
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VALUE VISITORS
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CALCULATE ROI
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THE FORMULA
c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate lead value = c * s visitor value = c * s * i
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VALUE CUSTOMERS
Revenue: $200,000 20,000 unique visitors 200 leads 20 customers c = $10,000
c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate
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VALUE LEADS
c = $10,000 s = 10% i = 1% lead value = c * s = $1,000
c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate
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VALUE VISITORS
c = $10,000 s = 10% i = 1% lead value = c * s = $1,000 visitor value = c * s * i = $10
c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate
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‘TRUE’ VISITOR VALUE
margin = 20% visitor = $2
c = customer value s = lead to sale conversion rate i = visitor to lead conversion rate
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VALUING A CAMPAIGN
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HBR CAMPAIGN
$50,000 budget
c = $10,000 s = 10% i = 1%
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HBR CAMPAIGN
$50,000 budget 250,000 impressions
c = $10,000 s = 10% i = 1%
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HBR CAMPAIGN
$50,000 budget 250,000 impressions 4% clickthru
c = $10,000 s = 10% i = 1%
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HBR CAMPAIGN
$50,000 budget 250,000 impressions 4% clickthru 10,000 visitors
c = $10,000 s = 10% i = 1%
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HBR CAMPAIGN
$50,000 budget 250,000 impressions 4% clickthru 10,000 visitors $100,000 * 20% margin
c = $10,000 s = 10% i = 1%
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HBR CAMPAIGN
$50,000 budget 250,000 impressions 4% clickthru 10,000 visitors $100,000 * 20% margin $20,000
c = $10,000 s = 10% i = 1%
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HBR CAMPAIGN
2:5 ROI
nope
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PROGRAMMATIC CAMPAIGN
$10,000
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PROGRAMMATIC CAMPAIGN
$10,000 250,000 impressions
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PROGRAMMATIC CAMPAIGN
$10,000 250,000 impressions 4% clickthru
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PROGRAMMATIC CAMPAIGN
$10,000 250,000 impressions 4% clickthru 10,000 visitors
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PROGRAMMATIC CAMPAIGN
$10,000 250,000 impressions 4% clickthru 10,000 visitors $100,000 * 20% margin
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PROGRAMMATIC CAMPAIGN
$10,000 250,000 impressions 4% clickthru 10,000 visitors $100,000 * 20% margin $20,000
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PROGRAMMATIC CAMPAIGN
2:1 ROI
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boom baby!!!
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HANDY-DANDY CALCULATOR http://portent.co/click-worth
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TEST SCENARIOS
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BUT IT GETS A LOT MORE COMPLICATED
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GETTING
REAL
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WHAT ABOUT CONTENT?
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social content retarget ppc lead
CONTENT IS RARELY THE ‘LAST CLICK’
Most stakeholders believe the last click
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triple the ppc budget!!!
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REMAIN CALM
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social content retarget ppc lead
CONTENT TRIGGERS BEHAVIORS
Visitor sees value
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social content retarget ppc lead
CONTENT STARTS THE PROCESS
Retargeting gently reminds them
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social content retarget ppc lead
CONTENT STARTS THE PROCESS
They remember when they search
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social content retarget ppc lead
CONTENT STARTS THE PROCESS
Poof. They’re a lead.
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HOW DO WE VALUE THAT?
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VALUE BEHAVIORS
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MEASURE BEHAVIORS
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Import this report: http://portent.co/pi-behavior
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REPORT IS FOR GA, BUT YOU CAN DO THE SAME ON OTHER PLATFORMS
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Average visitor converts 2.29%
LOOK AT TIME ON SITE
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25s+ are 3x more likely to convert
LOOK AT TIME ON SITE
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LET’S GET MORE OF THOSE, SHALL WE?
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Average visitor converts 5.68% worth $2, remember
HOW ABOUT SEGMENTS?
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Marketing nerds 30% more likely to convert
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ALSO MORE PLEASE
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Shared URLs
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do you realize what
this means?!!!
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we can connect behavior to
conversions!
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not just clicks and views.
behavior!!!!
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if content changes behavior, and we can
measure behavior value…
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we can measure content
value!!!
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25s+ are 3x more likely to convert
BACK TO THIS
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avg > 25s
CONVERSION RATES
0.00%
5.00%
10.00%
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hang on. this is just correlation.
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MAYBE. IT’S ONE HECK OF A HINT, THOUGH.
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IF OUR CONTENT CAN ATTRACT MORE 25s + VISITS
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THEN IT’S ADDING VALUE
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avg > 25s
CONVERSION RATES
0.00%
5.00%
10.00%
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TWO LAYERS
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LAYER 1: FUDGE THE NUMBERS
SERIOUSLY?
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D
‘FAKES’ THE CLOSED LOOP
CRM SITE
BEHAVIOR
TACTIC
GOAL
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Assume average = $2
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3x more likely, so worth $6
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avg > 25s $0.00
$2.00
$4.00
$6.00
$8.00
$4
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CONTENT ATTRACTS 1,000 MORE 25s+ VISITS GENERATES $4000.00 IN VALUE
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CONTENT BUDGET: $20,000 MARKETING BUDGET: $20,000 3,000 leads/year increase >25s visits 10% 300 more leads 300 * $1,000 = $300,000 growth
CONTENT CAMPAIGN
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CONTENT CAMPAIGN
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it’s only an assist. You can’t attribute it all!
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FAIR ENOUGH. 50% ASSIST = $150,000 CONTRIBUTED
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HIGH FIVE YOU NERDS
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GOOD COMPARATIVE TOOL HELPS PRIORITIZE
OFTEN MORE THAN ENOUGH
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MAY LEAD TO EMBARRASSMENT DOESN’T REALLY PREDICT ROI
CORRELATION≠CAUSATION
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LAYER 2: CLOSE THE LOOP
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100% CLOSED-LOOP ANALYTICS
CRM SITE
BEHAVIOR
TACTIC
GOAL
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IT’S A THING
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100% CLOSED-LOOP ANALYTICS
CRM SITE ANALYTICS
COOKIE SENT TO…
COOKIE PASSED BACK TO…
GOAL
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TRACK WEB VISIT VALUE AT THE INDIVIDUAL LEVEL
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Match up with HubSpot lead
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http://portent.co/gahub
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GET MORE GRANULAR
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GET MORE GRANULAR
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HOLY #@)($* ARE YOU @!*$$!
KIDDING ME?!!!
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i am pumped
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GARBAGE IN, GARBAGE OUT
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RESOURCE INTENSIVE
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BUT…
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BONUS ROUND
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EXTRACTING GOALS FROM UNWILLING STAKEHOLDERS
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NO GOALS?!
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“GOAL = .1% MORE”
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“THAT’S NUTS!”
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“WHY?”
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“IT’S NOT ENOUGH GROWTH”
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“OK, HOW ABOUT 1000% MORE”
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“THAT’S NUTS!”
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“HOW ABOUT 10% MORE”
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AND SO ON
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THE ‘WHY NOT’ TECHNIQUE
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CONTENT BUDGET: $20,000 MARKETING BUDGET: $20,000
CONTENT CAMPAIGN
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IF THIS GENERATES FOUR CUSTOMERS
IT BREAKS EVEN
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IF THIS ASSISTS 50% TO EIGHT SALES IT BREAKS EVEN
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LOW RISK HIGH POTENTIAL
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WHY NOT?!!!
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Marketing nerds 30% more likely to convert
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TARGETED SOCIAL CAMPAIGN $500 3 million visitors/year 3,000 leads/year increase marketing nerd audience 10% 30 more marketing nerds 2 more leads = $2,000 growth
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IF THIS GENERATES TWO MARKETING NERD LEADS IT BREAKS EVEN
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ZERO RISK ??? POTENTIAL
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WHY NOT?!!!
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THE SOMEWHAT DISAPPOINTING
FINISH
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THIS IS NOT A BATTLE
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THE ‘WHY NOT’ TECHNIQUE
IT MAY BE UNEXPLORED TERRITORY
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IT IS ALL ABOUT INCREMENTAL IMPROVEMENT
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ANY PROGRESS TOWARDS THIS HELPS
CRM SITE
BEHAVIOR
TACTIC
GOAL
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THIS IS ABOUT WHAT’S POSSIBLE
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try it. visualize fur.
Ian Lurie @portentint www.portent.com
http://portent.co/roirage
COMMENCE HECKLING