winning the marketing measurement marathon a step by-step approach, as presented by david raab at...
DESCRIPTION
Your job as a marketer is hard enough without trying to do it blindfolded. This session shows how marketers can overcome the key obstacles to effective measurement by tracking their impact on leads as they move through stages in the buying process. You’ll learn how stage-based measurement meets the two critical goals of showing how marketing has added to company revenue, and understand which marketing programs give the highest return on investment.TRANSCRIPT
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Winning the Marketing Measurement Marathon: a Step-by-Step Approach
David M. Raab, PrincipalRaab Associates, Inc.
[email protected] 14, 2010
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
Page 2© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Pressures on Marketers
new media: more choicesnew buying process: more tasksnew technology: more capacitynew expectations: more pressure
RESULT: greater need for measurement
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Measurement is Important
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
Most Important Concepts: 3 Year Trendsource: Anderson Analytics, 2010 Marketing Trends Report
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Measurement is important, but…
…we measure the wrong things
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
What Marketing Is Measuringsource: Visionedge Marketing, 2010 Marketing Performance Measurement and Management
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Measurement is important, but…
…we don’t get any better at it
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
Does your firm calculate marketing profitability, ROI (return on investment) or a similar financial measure to assess marketing effectiveness? (n = 303, 326, 226)
2008 2009 2010
Yes, we calculate ROI, net present value (NPV) or other profitability metrics for at least some of our marketing campaigns / investments
26% 24% 27%
Somewhat, we calculate some financial metrics such as cost per lead and cost per sale but not profitability metrics such as ROI and NPV.
34% 42% 43%
No, we use traditional marketing metrics but not financial metrics. 40% 34% 30%
Use of ROI Metrics to Assess Marketing Effectivenesssource: Lenskold Group, 2010 Lead Generation Marketing ROI Study
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Measurement is important, but…
…we spend our money elsewhere
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
Planned Investments in Key Marketing Initiativessource: Accenture Marketing Transformation, Onward and Up (2010)
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The problem is…everything
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
Barriers to Improvementsource: CMG Partners Chadwick Martin Bailey, The Marketing Performance Advantage 2009
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Measurement Maturity Model
1. count response2. show impact3. understand process4. optimize results5. show strategic alignment
Page 10© 2010 Marketo, Inc. Marketo Proprietary and Confidential
Marketers Need an
Integrated Measurement System
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System Goals
show aggregate value from marketingshow incremental value by program
value = revenue, not leads
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Purchase Stages
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
anonymous
known
interested
qualified
sales readyopportunity
proposal
sale
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Stage-Based Measurement
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
prospect email 60%
landing page 20%
registration page 20%
white paper 100%
Webinar 100%
demo 70%
pricing page 30%
forum query 100%
clients page 100%
anonymousknown
interestedqualified
sales readyopportunity
proposalsale
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Delivery Requirements: Data
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Delivery Requirements: Stage Definitions
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Delivery Requirements: Database
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Delivery Requirements: Projections
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Delivery Requirements: Testing
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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System Evaluation Checklist
already covered:data qualitystage discovery, rules, prebuilt flowsanalytical databaseprojections, optimization and simulationtesting and interactions
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
also:integrate with source data back-fill historical dataplans, costs, scenariosalerts for over/under performance vs. history, vs. plan, vs. recentad hoc segmentation & data mining
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Critical Metrics
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
goal metricshow value of marketing cohort ROI
measure program ROI incremental ROI
understand stage results stage statistics
forecast revenue by period
revenue projections
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What Next?
Make a commitment
Follow the maturity model:
measure response: check your data measure acquisition: need simple system measure nurture: need stage-based system improve results: need testing and optimization
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Summary
Better measurement is essentialAdvanced measurement requires stagesSystems are increasingly availableBetter measurement is essential
© 2010 Marketo, Inc. Marketo Proprietary and Confidential
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Thank You!David M. Raab
© 2010 Marketo, Inc. Marketo Proprietary and Confidential