the roi dilemma: aligning marketing priorities with measurable performance

The ROI Dilemma: Aligning Marketing Priorities with Measurable Results

Featured Analyst:

The ROI

Dilemma

Ross GraberServices Director,

Marketing Operations Strategies

@RossGraber

James ThomasCMO

@jthomas_44

Presenters

Agenda

Housekeeping • Questions? Use the Chat Panel

or on Twitter

• Technical Difficulties? Contact [email protected]

• The ROI Dilemma: marketing measurement challenges and trends

• How to leverage effective planning processes to drive effective measurement using the SiriusDecisions Campaign Framework

• How to deploy strategic planning processes with investments, measurement and performance using Allocadia

#SDWebinar

mailto:[email protected]

Ross GraberService Director, Marketing Operations Strategies @RossGraber #sdwebinar

Linking goals and performance measurement

The Marketing ROI Dilemma

© 2014 SiriusDecisions. All Rights Reserved 6

What We’ll Cover Today

• Key issues

• Marketers struggle to develop measurement that adequately captures marketing’s impact – especially when demand creation isn’t the only goal

• Poor definition of what will be measured and how success will be judged leads to inefficient use of marketing’s resources

• Technology-fueled attribution models may offer easy answers, but they are leading b-to-b marketers astray

• What you will walk away with

• Key considerations for building a measurement strategy

• An understanding of attribution modeling options and their implications

• A planning framework for delivering more strategic measurement

SiriusPerspective:


Marketing Leaders: Still Struggling With Measurement

Working Not - Working

• Better visibility of tactic performance through improved systems

• Marketing sourced revenue is clearer

• Demand waterfall helps identify required volumes and problem areas

• No agreement on a definitive ROI metric

• Poor connections between activities and business impact

• Evaluation of non-demand creating activities

Marketing MeasurementA strategic view

SiriusPerspective:


Expectations For Marketing’s Contribution

Large:Strategic/Enterprise

Named/Territor

y

Small/Midsizeand Non-Named

Account Type Pipeline KPI Averages

Typical Program Balance

Demand >40%Enablement 20%-30%Reputation <20%

Influenced: 60%-75%Sourced: 15%-25%

Enablement >40%Demand 30%-40%Reputation <20%

Influenced: >75%Sourced: <10%

Reputation >40%Demand 30%-40%Enablement <15%

Influenced: 50%-60%Sourced: 25%-45%

SiriusPerspective: Sourcing pipeline is not always the primary objective of marketing; develop measurements that reflect marketing’s priorities.

SiriusPerspective:


Listening

Delivery and Education

Coaching

Comm

unicatio

n

Goal Setting

• Project Initiation• Stakeholder Definition• Reporting Goal Definition• Business Goal Validation

Execution

• Data Gathering• Report Building• Documentation and

Approvals• Launch /Launch Planning

Evolution

• Adoption and Use

• Refinement

Marketing Measurement Is a ProcessSiriusPerspective: A deliberate process drives development of useful, well understood, accepted systems of measurement – success isn’t achieved through happenstance.

SiriusPerspective:


The first step toward aligned measurement requires distinguishingbetween what is done and the results produced.

Metric Class: Getting Specific

Counts of actions taken

• Email sent• Calls made• Requirements

writtenActivity

Direct results of actions

• Inquiries• Proposals• Demo requests

Output

Effects against business goals

• Revenue• Market share• Profit

Impact

Class Measure Description

SiriusPerspective:

Tactic Attribution“I want to know how much revenue each marketing tactic creates”

SiriusPerspective:


Popular wisdom and vendor opportunism is pushing b-to-b marketers toward tactic attribution models.

Attribution Models – The Basics

• Assess the value of individual marketing tactics through association with the revenue they yield

• Stake a claim to the value of won opportunities

• Factor revenue against the cost of a tactic to come up with a tactic ROI

How They Work

Tactic cost

Wonopportunityvalue

ROI

$25,000

$100,000

4X

SiriusPerspective:

SiriusPerspective:


Despite their variations, attribution models don’t deliver marketers a trustworthy view of the value created by different tactics.

Marketing Attribution Models – Tread Carefully!

Single Touch

Distributed

Variations Considerations

• First touch• Last touch• Select touch

• Even• Assumed• Statistical

• Simple to implement• Overlooks multi-touch, multi-

player value creation• Touch choice creates bias

• Factors in multi-touch complexity

• Rules often arbitrary and don’t reflect buying realities

• Must be predicated upon deep buying-cycle analysis

Att

rib

uti

on

M

od

els

SiriusPerspective:

There’s a Better Way

SiriusPerspective:


Effective Planning Drives Effective Measurement

Campaign Measurement Framework

Shows near-term outputs of tactic performance

Advertising SEM PR SocialTactic Types

Addresses campaign-wide achievement against top-level goals

Campaign

Summary

Measure against defined objectives connected to success

ReputationDemand Creation

Sales Enablemen

t

Market Intelligenc

e

Programs

Tactic Performance

Ad Impressions Clicks Inquiries Cost

A 1,000 20 4 $500

B 3,000 10 8 $5,000

C 2,000 200 2 $1,000

Tactic Shares Clicks Subscribes Cost

A 12 20 4 $500

B 20 10 8 $50

C 5 200 2 $0

SiriusPerspective: Organized by tactic type, program and campaign, view combinationsof actions relative to campaign objectives.

SiriusPerspective:


Revenue Goal $$$Campaign Goal 1: X% Market ShareCampaign Goal 2: +Y% RetentionCampaign Goal 3: >Z:1 Revenue : Invest.



Campaign


Sales Enablemen

t

Market Intelligenc

e

Webinars SocialContent

Syndication

Events

Summary

Tactic Types

Programs

Tactic Performance

Webinar Reg Attend MQL Cost

A 250 120 20 $5,000

B 500 100 8 $8,000

C 125 90 12 $3,000

Event Attend Inq Briefings Cost

A 50 12 0 $8,000

B 300 25 3 $10,000

C 100 20 6 $5,000

Demand Goal 1: +Q% PipelineDemand Goal 2: +R% VelocityDemand Goal 3: +S% Influence

SiriusPerspective: Organized by tactic type, program and campaign, view combinationsof actions relative to campaign objectives.

SiriusPerspective:


• Planning takes a disciplined approach supported by process, strategy, skills, tools and leadership

• Developing the charterfor marketing is difficult work

• Visibility to organizeperformance by expectations is oftenlacking

But Why Are Marketing Organizations Still Struggling?To get specific about planning and expectations, b-to-b organizations

must employ disciplined process, informed by data and supported by leadership.

Focus on Planning

SiriusPerspective:


SiriusPerspective: After specifying strategies for generating revenue, b-to-b organizations can align their marketing actions accordingly.

Breaking Down the Objectives

New Logo Retention

Upsell Cross-Sell

Sales in new accounts

Ensure existing customers retain existing commitments

Expand into new buying centers within existing logos

Expand in current buying centers within existing logos


Campaign Objectives Worksheet: Summary Level

Campaign-wideSummaryObjectives

How campaign objectives distribute across objective areas (relative priorities)Campaign Priority Stated Objectives

New Logo:• Logo count• % Logo gain• Market share• New logo

revenue

Retention:• % revenue

retained• % accounts

retained• Cost per

retained

Cross-sell:• New buying

center $$$• Account

expansion• Wallet share

Upsell:• Upsell revenue• % existing

product growth

• Wallet share

Sample Metrics

Revenue Objective: $______ or +___ %

New logo: ___ % ___% _________________

Retention: ___ % ___% _________________

Cross-sell: ___ % ___% _________________

Upsell: ___ % ___% _________________

SiriusPerspective:


Program Objectives Worksheet – Program Family

Reputation

Demand Creation

Sales Enablement

• Deals stall at late stages• Field sales reluctant to interact with persona A• Frequently outmaneuvered by competitor Q

• Inquiry counts are low• Qualifying a lead takes too long and costs too much• Content attracts users, not decisionmakers

• Small % of audience is aware of company• Those who know us know us for X, not Y• Competitor Z dominates the conversation

High

HighLow

High

Medium

LowHigh

Medium

Medium

SiriusPerspective: Organized by tactic type, program and campaign, view combinationsof actions relative to campaign objectives. Program Family List top three opportunities/obstacles to campaign success

per program family. Program tactics are designed to address these.

O / O

SiriusPerspective:


SiriusPerspective: Start with an allocation approach to budgeting, and fill in the details when quarterly budgets are understood.

Align Resources and Priorities

And Then to Quarters

Allocated to Program Families

Campaign Budget Campaign


Q2 Q3 Q4

Sales Enablement

Market Intelligence

Q1

And Then Bottom-up

to Execution TypesGlobal

DevelopmentGlobal

ExecutionRegional Execution

Regional Development


Recommendations

• Effective performance measurement starts with defining what the business expects from marketing.

• There isn’t one ROI metric, but instead a custom collection of measures that demonstrate marketing’s performance.

• Create this view performance from the top down, instead of trying to construct it by piecing together tactics outside of objectives.

• Link the organization’s goals with the actions marketing will take to produce those outcomes.

• Plan purposefully against marketing’s objectives and assign marketing’s resources to prioritized performance areas.

Thank You!


James ThomasCMO of Allocadia@jthomas_44 | @allocadia

#SDWebinar


How to Align Marketing Priorities with Performance Results using Allocadia

Create alignment and gain full visibility across your marketing organization

Your strategic plans, investments and budgets, all in one place.


Leadership View: Marketing Investment Target Performance

Gain insight to see how marketing is investing against business goals


Operations View: Strategic Investment Plan

Understand your global marketing mix and investment strategy


Tracking Investment Performance: Plan vs. Actuals

Know how your spending against plan with real-time insights


Marketing Performance: Marketing Returns

Strategize & Plan: Effective Planning to Marketing Measurement


Marketing Performance: Marketing Returns

Share how marketing is contributing to the business

Key Takeaways

• A better way of measurement starts with better planning

• Drive towards a sense of impact. Set marketing’s goal and develop expectations for performance

• Define how marketing will contribute and what they will drive for the business

Questions

Please your questions in the Chat panel.

To see a demo of Allocadia, go to:learn.allocadia.com/demo

Thank you. • Receive a copy of this presentation

• Get a personalized demo of Allocadia

learn.allocadia.com/demo

James ThomasCMO | Allocadia

[email protected]

@Jthomas_44

@allocadia

Ross GraberServices Director, Marketing

Operations Strategies

[email protected]

@RossGraber@siriusdecisions



