Maximizing the ROI of Inbound Clicks, Content & Conversion

10/2/2013

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permission from Lenskold Group 1

© 2013 Lenskold Group, Inc. All rights reserved.

Maximizing the ROI of Inbound Clicks,

Content & Conversion

AMA Webinar

Sponsored by



Lenskold Group Overview

� Lenskold Group founded in 1997

� Marketing profitability management• ROI Framework

• Measurement & Analysis

• ROI Tools & Dashboards

• Workshops & Training

� “Marketing ROI” book • One of the 5 most influential

marketing books of 2004

� Leading marketing ROI innovator

Partial Client List

10/2/2013




Inbound Marketing Measurement Framework


Inbound Mktg

Demand Mktg

Nurture Mktg

Brand Mktg

Influence on Buyer Decisions

BUYER STAGES

Unaware & Untroubled

Explorer

Seeker

Shopper

Buyer

User

ROLES OF

INBOUND + CONTENT

Trouble Prospects

Attract & Engage

Educate

Differentiate

Progress & Convert

Add ValueSales Channel

CO

NT

EN

T

FINANCIAL OUTCOMES� Increase Sales via Volume� Increase Sales via Conversion� Increase Customer Value� Increase Loyalty & Advocacy

10/2/2013




Inbound & Content Marketing

CO

NT

EN

TInbound Mktg

Products & Services

Paid Search SEOQR Codes

E-mail Online AdsSocial Media

White Papers BlogsNewsletters e-Books

Video ResearchWebinars Podcasts

Infographics


Inbound Mktg

Maximizing ROI

6

“Gross Margin” equals the Discounted Cash Flow (Net Present Value) of incremental profits and costs that result specifically from the corresponding marketing investment

Net Profit (Gross Margin – Marketing Invt)ROI = -------------------------- = -------------------------------

Marketing Invt Marketing Investment

Demand Mktg

Nurture Mktg

Brand Mktg

Sales Channel

CO

NT

EN

T Inbound Marketing Spend

Incremental Profits

Increase efficiency (e.g. SEO vs. SEM)

Increase effectiveness

FINANCIAL OUTCOMES� Increase Sales via Volume� Increase Sales via Conversion� Increase Customer Value� Increase Loyalty & Advocacy

10/2/2013




Inbound Mktg

Current Measures & Reporting

7

“Gross Margin” equals the Discounted Cash Flow (Net Present Value) of incremental profits and costs that result specifically from the corresponding marketing investment

Net Profit (Gross Margin – Marketing Invt)ROI = -------------------------- = -------------------------------

Marketing Invt Marketing Investment

Demand Mktg

Nurture Mktg

Brand Mktg

Sales Channel

CO

NT

EN

TFINANCIAL OUTCOMES� Increase Sales via Volume� Increase Sales via Conversion� Increase Customer Value� Increase Loyalty & Advocacy

COMMON MEASURES

Click Thru Rates

Engagement by Tactic

New Names by Source

New Leads by Source

Cost per Engagement, Lead or Sale?


Measurement Challenges

� Choosing right metrics• No closed loop tracking• Not reflecting role of tactic

� Inaccurate credit for outcomes:• First touch � Missing impact• Last touch � Missing impact• Shared attribution � Subjective

� Need multi-contact measures� More tactical than strategic

measures. Need insights into:• Targeting• Offer/Message• Destination• Integration

10/2/2013




Measurement & ROI Priorities

1. Better Metrics for Tracking Clicks, Content & Conversion

2. Measurements to Capture Incremental Lift for ROI

3. Improving Inbound Marketing ROI


1. Better Metrics for Tracking Clicks, Content & Conversion

10/2/2013




Approach to Measurements

Inbound Marketing� Key Measure: Quality of inbound

• Targeting• Destination• Engagement

Content Marketing� Key Measure: Incremental sales & profits

• Engagement• Lift in sales conversion rates• Lift in profit per sale

Inbound Mktg

Demand Mktg

Nurture Mktg

Brand Mktg

Sales Channel

CO

NT

EN

T


Comparison of Key Metrics

Inbound Marketing Content Marketing

Impressions (= search or ads)

Click-ThroughsClick Through Rate (CTR)

Impressions (= click throughs)

EngagedEngagement Rate

EngagedEngagement Rate

Re-EngagedRe-Engagement Rate

Other MetricsBounce RateNet VisitsEngage per Net Visit

IncrementalSalesRevenueProfits

10/2/2013




Engagement Results

Inbound Campaigns Impressions Clicks CTR Engaged Engage

RateBounce

Bounce Rate

Net Visits

Engage per Net

Visit

Paid Search - Research paper 50124 998 2.0% 303 30.4% 377 37.8% 621 48.8%

Paid Search - New buyer guide 71232 1264 1.8% 285 22.5% 724 57.3% 540 52.8%

Paid Search - 10 Tips 488043 10843 2.2% 1574 14.5% 3365 31.0% 7478 21.0%

SEO - CTO Interview Videocast

52045 3267 6.3% 255 7.8% 1313 40.2% 1954 13.1%

SEO - Research Paper 90123 4009 4.4% 140 3.5% 1765 44.0% 2244 6.2%

SEO - New Buyer Guide 86634 2991 3.5% 421 14.1% 1112 37.2% 1879 22.4%

SEO - Path to Success Infographic

102022 2577 2.5% 155 6.0% 1077 41.8% 1500 10.3%

Banner Ad - Research Paper 88234 2084 2.4% 198 9.5% 722 34.6% 1362 14.5%

Banner Ad - New Buyre Guide 91654 1324 1.4% 251 19.0% 589 44.5% 735 34.1%

Banner Ad - 10 Tips 109273 1987 1.8% 398 20.0% 998 50.2% 989 40.2%


Results Tracking – Closed Sales & ROI

Campaign Closed Sales Sales Conversion Rate

Marketing Cost Cost per Sale

Paid Search - Research paper 24 7.9% $4,491 $187.13

Paid Search - New buyer guide 14 4.9% $5,688 $406.29

Paid Search - 10 Tips 58 3.7% $48,794 $841.27

CampaignAverage Profit per

SaleTotal Profit

Additional Marketing Expenses

Total Expense

ROI

Paid Search - Research paper $2,463 $59,112 $15,150 $19,641 200.9%

Paid Search - New buyer guide $2,244 $31,416 $14,250 $19,938 57.5%

Paid Search - 10 Tips $2,154 $124,932 $78,700 $127,494 -2.0%

10/2/2013




First Source Inbound Channels

5%

3%

9%

2%

2%

8%

1st Source to Sales

22%

11%

23%

5%

8%

11%

1st Source to Lead

59%

62%

22%

74%

27%

18%

Webinars

e-Books

Videocast

Newsletter Subs

White Papers

Exec Briefing

1st Source to 2+ Engaged

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

1st Source

Distribution of First Source by Funnel Stage

Webinars e-Books Local Events Videocast Newsletter Subs White Papers Exec Briefing


Days to Close Analysis

� Many more buyers are first engaging with Webinars late in their buying cycle� E-Books and Newsletter Subscriptions are engaging buyers earlier in the buying

cycle

0

50

100

150

200

250

300

350

400

0 - 30 Days 30 - 60 Days 60 - 75 Days 75 - 90 Days 90+ Days

Closed Sales Volume by # of Days 1st Source to Close

Webinars e-Books Videocast Newsletter Subs White Papers Exec Briefing

10/2/2013




0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Webinars e-Books Videocast Newsletter Subs White Papers Exec Briefing

Distribution of Closed Sales by # Days 1st Source to Close

0 - 30 Days 30 - 60 Days 60 - 75 Days 75 - 90 Days 90+ Days

Days to Close Analysis

� Videocasts are engaged as a first source for buyers who convert quickly� Buyers engaged in Executive Briefings are generally closing in 30 to 60 days


Metrics for Clicks, Content & Conversion

Metrics must be aligned to ROI and provide different levels of insight.

KPIs Leading Indicators Diagnostic Metrics

Sales Conversion Rate Viral Shares Days to Close trends

Profit Contribution by Sources

Segment Engagement

Click-Through Rate

Profit per Sale Lead ScoreEngagement

Rate

Cost per SaleRe-Engagement

RateBounce

rate

10/2/2013




2. Measurements to Capture Incremental Lift for ROI


Incremental Lift for ROI

Results Tracking Metrics

Strategic market testing Modeling

Single-attribution approach

Incremental lift of click, content and conversions

Incremental lift of conversion by tactic

Insight to monitor and compare performance

Insight into strategies, funnel outcomes and

value lift

Insight into interaction effects

10/2/2013




Strategic Market Testing

Profitable Sales

Unaware ProspectsApproach

Test vs. Control Group

Measures incremental contribution to mix

Assess key funnel outcomes to close gaps

Webinar

Measures

Inbound targeting, tactics & messaging

Content tactic

Funnel objective

Content messaging

Timing

Contact progression

Multi-contact integration


Profitable Sales

Unaware Prospects

Webinar

Strategic Market Testing

Control (BAU)

Test (w/Webinar)

Incremental

New Contacts 32% 36% +2%

Re-Engagement 16% 24% +8%

New Leads 1,200 1,800 600

Sales 100 130 30

Repeat Sales 20 25 5

Avg. $/Customer $800 $1,000 $200

Profit $80,000 $130,000 $50,000

BAU = Business As Usual marketing and sales

10/2/2013




Marketing Channels & Potential Drivers

Paid Search

Online Display

Radio

Webinars

SEO

Offers

Email Marketing

Newsletters

Videocasts

Blogs

E-Books

Executive Briefings

Potential Drivers


Impact of Intermediary Variables on Sales

Vector Auto-Regression

� Identifies independent variables that drive multiple outcomes simultaneously

Sales

Potential Drivers

External Factors

Web Pageviews

Web Visits

Bayesian Networks

� Quantifies the causal relationship between outcomes

10/2/2013




Base Sales

Online Banner

Paid Search RadioE-mail Marketing

WebinarsBlogs

Newsletter Subs

Content Pageviews (Direct)

Webinars

Videocasts

E-books

Executive Briefings

Blogs

Content Pageviews

(Intermediary)

Results for Direct & Indirect Drivers

� The impact of Web Pageviews on Sales is attributed back to the marketing channels driving Pageviews.

Sales Contribution by Marketing Channel

Pageview Contribution by Marketing Channel


3. Improve Inbound Marketing ROI

10/2/2013




Analytics to Drive Performance Improvements

Analysis Opportunity Techniques

Engagement Path Analysis

Identify most effective series of content engagement to determine marketing triggers

Structural Equation Models Variations of Path Analyses

Customer Intelligence

Use key indicators from engagement history and customer data to guide marketing strategies

Pre-Post ComparisonMarket Testing

Lead Scoring

Use lead scores that project sales conversion and value to assess marketing contribution and estimate ROI

Data Mining Predictive Modeling


Engagement Path Analysis

Engagement Paths

Engaged

Lead

Closed + Growth

$ $$

AB

C D

A F

F

CC

Measures� Effectiveness based on

combinations of tactics� Works for content only

or all touchpoints� Identifies strengths as

well as combinations

Content Tactics

E-Newsletter

Research Study

Videocast

Case Study Webinar

Virtual Conference

White Paper Download

A

B

C

D

E

F

10/2/2013




Represents the relative strength in driving outcomes

Content Marketing Tactics

Summary of Engagement Strengths

Build Brand Positioning

Capture New Name (Initiator)

Educate with Content (Driver)

Engage with Key Messaging (Driver)

Nurture Future Buyers (Driver)

Convert to Sales-Ready Lead (MQL)

Pass to Sales (SAL > SQL)

Support Sales Conversion (Oppy)

Convert to Sale

Reinforce Decision (Loyalty)

A B C D E F


Lift from Customer Intelligence

Inbound SourceFunnel Stage Indicators

Content EngagedProfile (from forms)

Predictive Model of Data

Next Best Action

Lift on sales conversion, customer value and sales velocity

Customer intelligence contributes to sales and profits

� Inbound source is an indicator • Message• Placement or keyword

� Content engaged and timing guide targeting precision

Measurement� Compare performance with and

without intelligence• Pre-Post trend analysis• Market test

10/2/2013




Webinars % ConvertAverage

Profit# Leads

Projected Profit

Client Case Study 5.1% $4,285 100 $21,962 Growth Strategies 4.2% $3,844 100 $16,145 Reducing Expense 4.1% $3,132 100 $12,841

Reduce Expense Webinar

# Employees RegionWhite Paper Download

Engage Count

…more data pts

Convert Score

Profit Score

Lead #1 250+ NY MSA Yes 6 7.7% $5,851 Lead #2 1 - 10 SF MSA No 4 3.2% $4,296 Lead #3 10 - 25 Midwest No 2 3.8% $2,883

…Lead #100 10 - 25 NY MSA Yes 3 5.8% $4,114

Average 5.1% $4,282

Growth Strategy Webinar


Engage Count

…more data pts

Convert Score

Profit Score

Lead #1 250+ NY MSA Yes 6 7.7% $5,857Lead #2 1 - 10 SF MSA No 4 3.2% $4,291 Lead #3 10 - 25 Midwest No 2 3.8% $2,886

…Lead #100 10 - 25 NY MSA Yes 3 5.8% $4,118

Average 5.1% $4,284

Lead Scores Provide Assessment

Case Study Webinar


Engage Count

…more data pts

Convert Score

Profit Score

Lead #1 250+ NY MSA Yes 6 7.7% $5,852 Lead #2 1 - 10 SF MSA No 4 3.2% $4,294 Lead #3 10 - 25 Midwest No 2 3.8% $2,882

…Lead #100 10 - 25 NY MSA Yes 3 5.8% $4,113 Average 5.1% $4,285

Leads scored based on profile & behavior details

Approach provides high accuracy of projected values for campaign comparisons


Uncover Big Insights for Big Wins

Effectiveness Drivers� Inbound campaigns� Targeting� Messaging� Content quality� Funnel stage drivers� Integrated marketing� Knowledge-building

Strategic Measures� Integrated content strategies� Message-driven targeting

• Inbound to content

� Intelligence for key indicators� Content to conversion strategies� Viral content contribution

• Social integration

� Closing key gaps

10/2/2013




Additional Insights at www.lenskold.com

� Marketing ROI Research Studies

� White Papers

� Articles

� E-newsletter subscription

Jim [email protected]