Marketing Metrics...(CMO Council) Still a Priority: •59% consider measuring Marketing performance to be a top-three priority for their company. •Accountability top priority for

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The Power of Marketing Metrics: Demonstrating Marketing’s Value to

the Organization

Laura Patterson

President & [email protected]

Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2010 VisionEdge Marketing. VEM Proprietary. Not for reproduction or redistribution without written permission. 2

Founded in 1999 and headquartered in Austin, TX, VisionEdge Marketing, Inc. serves more than 100 customers, and counting.

VisionEdge Marketing, Inc. is a data-drivenand metrics-focused marketing firm that specializes in improving marketing performance and creating competitive advantage designed to attract, secure and retain profitable customers.

Services Include:

Marketing performance management

Marketing and sales alignment

Product and strategic marketing

Pipeline re-engineering

Professional development

About VisionEdge Marketing – Experienced Practitioners

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Session Objectives

1. Identify best practices in

marketing measurement,

accountability and analytics

2. Clarify the value of

measuring marketing

3. Create measurable

marketing objectives

4. Establish performance

targets

5. Formulate a set of marketing

measures that will serve as

the foundation for your

dashboard

“Need the math behind the

creativity,”

John Seifert, Chairman-

CEO of Ogilvy & Mather North America


Why Companies Invest in Marketing

Understand the market and customers

Develop and execute a strategy to create

consideration and preference that enables the

organization to

Acquire more of something

Acquire it faster

Acquire it cheaper

Otherwise, might as well just put more feet on the

street

Need to demonstrate we are “getting the job

done”

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3 Things Marketing is Expected to Produce

1. Find Profitable Members

The process of acquisition

New customer acquisition – net new business

2. Keep Profitable Members

The process of retention

3. Grow Profitable Members

The process of increasing the value of your members


Our 3 Roles Enable Us to Move 3 Business Needles

Find/SecureProfitableCustomers

Acquisition

KeepCustomers

Penetration

GrowCustomer

Value

Monetization

Market Share Lifetime ValueBrand/

Customer Equity

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The Grade Trend isn’t Good

VEM MPM 2007-2010


Two Impediments

VEM MPM 2010

47% 47%

38%

32%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

2009 2010

The link between marketing and the

business is clear

The value of marketing is clear to the

leadership team

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More Focused on Metrics Than Performance Management

Where Marketing Focuses

40%

33%

31%

31%

30%

27%

0% 10% 20% 30% 40% 50%

Campaign Management

Customer Management

Lead Management

Market Outcomes

Marketing Management

Brand

VEM MPM 2010


Metrics-Which Example Best Represents What You Track?

Tracked Trial Rates

Measured Adoptions Rates

Focused on Category Growth rate

Tracked Pipeline Contribution

Tracked everything Web

Press Hits

Measured Awareness

Focused on Lead ROI

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Marketing Metrics Focus

Metric Areas

40%

29%32%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Activity Performance Indicator Outcome

VEM MPM 2010


Illustrating the Importance of Selecting the Right Metric – Measuring Activity vs. Outcomes

My friend Joe

runs 5X/week

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Marketing Metrics Are Missing the Mark

VEM MPM Study 2009

-Where’s the $?-What’s the biz impact?


Don’t Just Take Our Word

Marketing is under increasing pressure to:

Show impact on the business

Demonstrate accountability

Communicate its value

“While proving ROI on marketing performance is nothing new, the recession increased the emphasis on accountability and analytics, and this will continue even as a recovery gets under way.” (BtoB

1/18/09)

http://www.btobonline.com/apps/pbcs.dll/section?category=btobissue

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A Journey Ten Year’s in the Making

CEOs reveal that "enhanced return on Marketing investment― is a top priority for Marketing. (ARF)

Top Priority•66% rank Accountability as Chief Concern (ANA)•Measuring effectiveness is second most important priority (ANA)•66% of business executives say marketing analytics

and metrics are marketing’s greatest need (Booz Allen)Lack of Satisfaction:•Only 21% of 319 respondents rate themselves "satisfied" or "very satisfied" with Metrics capabilities

(CMO Council)Measurement Challenged:•Over half (51%) say that difficulty in measuring performance a key reason for pressure on Marketing department (ANA and Booz Allen Hamilton)

Don’t make the grade:•Only 17% of CEOs would give Marketing a ―A.‖ (VEM)• 34.9% of CEOs give marketing a C grade, only 9.6% of CEOs give

marketing an A grade, 8.4% give marketing a D grade. (CMO Council)Still a Priority:•59% consider measuring Marketing performance to be a top-three priority for their company.•Accountability top priority for 66% of senior Marketing executives (ANA)

Can’t Get No Satisfaction:•Only 9% somewhat satisfied with their company’s ability to set and monitor Marketing Metrics (VEM)•48% felt that CEOs believe that their organization’s ability to measure marketing performance was only marginally effective. (VEM MPM)

Measurement Challenged:•Marketing is onlymarginally or somewhateffective at measuringEffectiveness (Deloittestudy of over 460 executives)

Still a Priority:•54% of survey participants say measuring marketing performance is one of their top 3 priorities

Measurement Challenged:Marketers remain challenged to measure value and ROI, <50% use marketing analytics (Alterian, n=1545 )

Dissatisfaction With Metrics Continues:•96% of marketers tracking 1-20 metrics and• 76% say metrics are not useful in decision making(Mktg Leadership Roundtable)Top Priority Still:•CMOs under pressure to demonstrate value; ROI major issue in 2008 (B-B Mag)

Still Don’t Make the Grade:• only22% of CEOs give Marketing an ―A‖ (VEM MPM)•Fewer than 1 in 10 say their organization is completely effective at MPM (Lenskold)

•Measurement Challenged:•30% of 200 CMOs rank MPM most significant challenge (Aberdeen)Top Priority Still:•Connect Marketing to Financial Consequences (Aberdeen)•Proving ROI critical (Red Herring CMO Summit)•Need to show impact on purchasing (B-B Outlook 2009)

20002004

2005 2006 20092007 2008


What’s Slowing Our Progress

Satisfaction with MPM Skills

55% 54%

46%

55% 55%

19%23%

27%

16% 17%

0%

10%

20%

30%

40%

50%

60%

Performance target

setting process

Performance target

settings skills

Internal data analytics

skills

Metrics development

process

Measurement process

Dissatisfied Satisfied

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Especially When It Comes to Data and Measurement

Satisfaction with Data Collection and Technology

18% 17% 16% 19%14%

60%64% 65%

59%68%

0%

20%

40%

60%

80%

100%

Data collection process Metrics tracking

process

Metric reporting

process

Data quality Performance reporting

tools

Satisfaction Dissatisfaction

VEM MPM 2010


Despite Numerous Tools

Pre-1990

BI ToolsCognos

Hyperion

CRMGoldmineSage Software/ACT

Banking SWJack HenryMarquis

1990

1992

1993

1998

1999

2001

Business Objects

Campaign ManagementUnica

PR MetricsVocus

Siebel

Web Analytics

Webtrends

AprimoNetSuite

SalesforceEloquaGoogle Analytics

Marketing AnalyticsImmediateFX

ManticoreMarketingPilot

Raddon IntegratorMarketoSM2

2006

2002

LeadGenesysVtrenz

1980

First MarketingMeasurement ConferenceORSA/TIMS Special

Interest Conference on Market Measurement and Analysis

2004

Telligent

1996

Cymfony

1996

Alterian

2000

Harland

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It’s Affecting the Revenue Engine

Impacts

the number of opportunities in the pipeline

the average deal/app size

the win rate and

the sales cycle

CSO Insights 2010

NA, 6.1%

Exceeds

Expectations,

5.1%

Meets

Expectations,

25.6%Needs

Improvement

, 63.2%

Quality and Quantity of Leads Generated By Marketing


And Marketing Budgets

Marketing budgets were cut over 20% on average in 2009 vs.. levels in

2007/2008

According to B-to-B Magazine 2010 Outlook: Marketing Priorities and Plans”

survey, “in 2009 nearly 60% of marketers cut their marketing budgets in

response to the recession.”

The number of companies that cut marketing budgets in 2009 is 25% higher than predicted in January 2009

In one survey (Forrester) less than 20% of companies are expecting

marketing budget increases while over 40% are expecting further reductions

in 2010.

Compared to for example, R&D which was flat to slightly up in 2009 over

2008

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Break the Never Ending Cycle

Perhaps the greatest risk is that without a perception of accountability and value, CEOs

and CFOs will make sweeping, arbitrary decisions about cutting expenditures which ignores the relationship between marketing spending to effectiveness and produces a short-term focus leading to limited success.

Need spending to go from outputs-focused to outcome-focused


Output-Based vs. Outcome-Based Budgets

Hypothetical but all too common marketing budget –cannot link investments to results

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Need Performance Management

…the process

of measuring progress

toward

achieving key outcomes and

objectives in order to

optimize

individual, group or

organizational performance.

CMO Council's 2008 Marketing Outlook

“The top challenge for marketers remains to better quantify and measurethe value of marketing programs," in spite of improvements in accountability over previous years.


Performance Management a Priority

55%

34% 35%

67% 67%

44%50%

33% 31%

60% 62%

42%

60%53% 56%

52%

65%

53%

0%

20%

40%

60%

80%

100%

Total CEO CEO/CFO/COO CMO/VP

Marketing

Director/Manager Other

Three Year Trend for MPM as a Priority

2008 2009 2010

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Best Practices Marketing Organizations

Have a set of measurable

performance standards, a

pointed focus on outcomes,

and clear lines of

accountability.

They are performance-driven

outcome-based .


Characteristics of a Performance-Driven Marketing Organization

1. Align and link marketing to

business outcomes

2. Embrace a culture of

accountability

3. Adopt a measurement framework

that establishes clear standards of

performance and metrics

4. Create a performance

measurement system based on

data and analytics

5. Use data and performance targets

to drive continuous improvement

and to hold the entire system

accountable for performance.

6. Apply analytics to facilitate fact-

based decision making

7. Align resources, policies, and

practices

8. Add the right skills, systems and

tools

9. Track and report results against performance standards

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Made A Transformation

Design and select metrics that

measure marketing‟s impact on

the business

Ground metrics in data and

analytics

Use metrics that measure

efficiency, effectiveness and

payback

Create a measurement management system and

consistently use it

Capture performance metrics as

quickly as possible in order to

instigate immediate change in

execution

Report results and performance in

real- time

Three Changes They Made

1. Became outcome-centered

2. Shift

From Tactical to More Strategic -broaden focus from sales support to a marketing framework linked to business outcomes

To metrics that impact the organization‟s economic performance & strengths both financial & NON-FINANCIAL goals

3. Balance

The ROI of current programs while still driving strategic issues that impact long-term viability


Four Hurdles Best-in-Class Marketers Overcome

Measurement Competence

Analytics and Skills

More Strategic Metrics

Better Tools and Process

Nearly everyone says business with existing customers is important, few use metrics such as•Length of customer tenure, purchase frequency and recency, value of the overall customer base, customer lifetime value and share of wallet

•Other than leads to conversion, track little else. (VEM 2009)

•“Shockingly low investments in marketing technology and still immature processes‖ (IDC Dec 2008)

•“Real success will come from being smarter and more strategic in operations” (B-B 2009)

“Lack employees with specific marketing analytics expertise” (Forrester

2008)

“Less than half of respondents use analytics” (Alterian

2009)

―Pressure has mounted on marketers to accurately predict, measure, and optimize results”(Marketing Sherpa 2009)

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Six Action Steps They Employ

Align and Link to the Business

Set Measurable Marketing Objectives

Adopt a Metrics Framework

Select Outcome—based Performance Targets

Measure

Report


• Identify your organizations top business outcomes

• Capture them in the words of your CEO

• Make sure they are quantifiable

• Clarify which ones marketing is expected to impact

• Understand to what degree Marketing is

expected to move the needle

Action Step 1: Align to Business Outcomes

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Recommended Action:Using Mapping to Create Alignment

Mapping is a

process that ensures marketing is aligned to business outcomes

technique for creating a common

vision and shared language for improving business results

Mapping allows marketing the opportunity to define their own objectives

A Map is a step-by-step description of the

actions taken by marketing personnel –

Direct line of site between a specific

set of activities to produce a defined set of outcomes presented in a visual

format.


Top Down Process

Vision

Outcomes

Objectives

Activities

Strategies

Tactics

Results

Programs

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Direct Line of Sight: Outcome to Tactics Ladder

Outcome

Measurable Objective

Strategy

T

Outcome Outcome




Strategy Strategy Strategy Strategy

TT

T

TT

TT

TT

TT

TT

TT

TT

TTActivities

Time-based milestonesCostOwnership

Program Program Program Program Program

KPIs

Performance

-targetsand measures

By X month, leverage social

media and online events to create a community of X#

active ctm users -Program $

-- Person

ID social media- cost- Person--date-- Establish community charter, rqmnts,

-Cost-Person-date

-Develop community list--cost-Person-Date

-Develop and send invite-Cost-Person-Date

Grass roots user community

X number of customers

renew primary service resulting in $Y

X number of tier 1 and 2 customers

upgrade to new platform resulting in $Y and growth in SOW

X number of ABC segment

customers adopt new platform resulting in $Y and X% growth in MS

Increase customer preference

by X% over competitive products within 12 mos

Increase customer usage by X%

over prior year within 6 mos

Create X number qualified leads

among segment share determiners within 3 months of

platform launch with a 80%+ conversion confidence

3rd Party Influencer Endorsement Customer

Ambassador

Trial

Customer Evangelists

High Touch Niche Events

By X month, create X #

evangelists and X# ambassadors who

engage with X% of tier 1 and 2 ctms

- Ambassador Program

$-- Person

--Evangelist program $-- Person

By X month, X#

existing ctms & X# new ctms will

complete a trial -Program $

-- Person

By X month, X# of positive

mentions from tier 1 third party influencers

-Program $-- Person

Secure X#

prospect appts per niche event

-Program $-- Person

ID evangelists and ambassadors

-Cost-- person

-- date

Establish group charters and rqmnts

-cost-Person

-- date

Tactics and activities

-Cost-- person

-- date


-cost-Person

-- date


-Cost-- person

-- date


-cost-Person

-- date


-Cost-- person

-- date


-cost-Person

-- date

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Page 18


Improve customer advocacy score by 10% by YE2010

Action Step 2: Performance Based Marketing Objectives

Realistic

Measurable

Time specific

Aligned and consistent with the organization’s priorities

4 Criteria:

Increase referral rate of existing customers by 40% by YE2010

25% of existing customers will adopt new XYZ product within 6 months of launch

Contribute 25% of the qualified new opportunities quarterly with a 70% or greater conversion rate

confidence


What Would The Shift Look Like

FROM: Outputs

Run half-page ads in all tier one

trade publications monthly

Exhibit at the primary tradeshow

for each vertical

Create product brochure for

new product

Revise online demo

Generate 500 leads

Implement a promotion with two

partners

Distribute newsletter 6 times

Send email blasts to prospects

monthly

Conduct customer satisfaction

survey

Research customer product requirements

TO: Outcomes

Add 7-8 New Strategic Accounts to support NA Market Penetration

Increase Customer Lifetime Value from X to Y

Grow share of wallet among our top

customers from A to B

Tier One Customers will purchase 2 or

more products from the Y Family

Add 3 New partners in each of three

primary verticals and in each region

Grow Tier 1 Distributors Sales by X%

Grow our product category by X%

Increase penetration of ABC product in Tier 1 Customers by 15%

Improve our NAS from 10.2 to 16

Change our MVI from <100 to >100

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Action Step 3: Metrics

Metric:

A metric is a standard unit of measure

Business -Standards of measurement by which efficiency, performance, progress, or qualityof a plan, process, or product can be assessed


Adopt a Metrics FrameworkOutputs Outcomes

Activity-

Based

Operational

Outcome-

Based

Leading-

Indicators

Predictive

CountingMedia Mentions

Ctm visitsClick Through Rates

Site Visitors

Demo Downloads

EfficiencyApps/branch

Campaign ROIProgram: People Ratio

Cost/Billing Dollar

Program spend/headcountProgram/Total Spend

Awareness: Demand RatioMarketing Spend:Revenue

Business OutcomesMarket Share

Category OwnershipLifetime Value

Adoption Rates

Likelihood

of OutcomeShare of Wallet

Rate of Growth:

MarketShare of Preference

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Strategic Metrics Tie Marketing to the Business

Our Job Points the Way to the Metrics

5 Customer/Brand

Equity Indicators

• Price Premium

• Net Advocate Score

• Customer Franchise

Value

• New Product

Acceptance/

Adoption Rates

• Product Margins

4 Lifetime Value

Indicators

• Purchase Frequency

• Share of Wallet

• Advocacy/Loyalty

• Tenure

5 Market Share

Indicators

• Share of Preference

• Share of Voice

• Share of Distribution

• Rate of Customer

Acquisition

• Rate of Growth:Market


Action Step 4: Setting Performance Targets

Difficulty in setting targets -common challenge for marketers

Make sure the measures and the targets are relevant to the

objectives and outcomes

Initiates discussion about:

Priorities

Focus

Alignment

Effectiveness

Enables faster course adjustments

Performance TargetsTurn the Wheel

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Performance Targets Across the Board

Use performance targets when

You can positively affect

the outcome (within the timescale for this target)

It will help focus attention on a particular area of

importance

It will motivate the people working in this area to put

more effort into finding ways of improving it

It help demonstrate a commitment to deliver

It is possible to monitor progress against the

target

Objective: Accelerate adoption of Z product

among X by Y (target)

Metric: Product Adoption Rate (target)

Strategy: Influencers and Evangelists

Program: X# Third Party Endorsements

Credible third parties such as bloggers, editors,

industry experts and members

recommend institution

Metrics:

20 positive mentions from tier 1

publications and top 10 bloggers

Activities: Conduct Press Briefings with

tier 1 editors and bloggers 4 weeks

prior to launch

Two Tier 1 customer reference stories prior

launch

Activities? – Complete videos with at

least 5 tier 1 customers in each key

segments 1 quarter prior to launch of

new product


10 Attributes of a Good Performance Target

1. Indicate a Range of Performance

2. Assigned Time Frames

3. Measure the Result Intended

4. Non-biased

5. Numerical

6. Based on quality reliable and consistent data

7. Measured against a baseline

8. Unambiguous

9. Verifiable

10. Attributable

Activity/Output Vs. Outcome-Based Performance Targets

Produce 1 webinar/month (run 5X/week)

Secure 100-200 participants/webinar (run 30 mins 5X/week)

Acquire 15-20 qualified leads/webinar

(achieve 8 min/mile pace for 5K)

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Action Step 5: Marketing Measurement

Marketing Measurement:

The act of measuring or the process of being measured.

Measure:Dimensions, quantity, or capacity as ascertained by comparison with a standard.

Measurement, to be

accepted and

actively supported,

should be viewed as

an integral part of

everyone's job.

It must become an

accepted part of the

organizational culture.

It should be clearly

understood and

accepted that

everyone is expected

to take an active role.


Data - The Foundation of Measurement Performance Driven-Marketing

Organizations

Embrace data

Install and use a data

management system

Get the best data possible and

use it in a pre-defined, unbiased way

Establishing metrics, determining effectiveness, understanding

efficiencies, all take data

Data is everywhere, the challenge -

locating data relevant to the

organization‟s priorities and

outcomes and then aggregating it

“Data is the new creative.”- Stephan Chase, Marriott Rewards

Need to:

Install and use a

data management system

Get the best data

possible and use it

in a pre-defined, unbiased way

Create a data

inventory and identify the gaps

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Leverage Analytics

The ability to drive actionable insight from data

Analytics are critical to:

Facilitating better and faster

fact-based decisions

Linking the results of marketing programs to customer consideration, preference,

loyalty, share of wallet and the financial results these outcomes

produce.

Establishing some degree of

accuracy the outcomes that can be achieved from the

relationships, products, services, and processes

Need to:

Add more analytic staff in marketing

Initiate modeling


Best Practices Data and Analytics

1. Identify and inventory critical data elements

2. Establish a data infrastructure that includes technology, skills, and tools

3. Define and implement a data collection process

4. Enable access to data across different databases

5. Use data to build simulation and predictive models

6. Leverage a variety of data mining techniques

7. Take disparate data and merge it for decision making purposes (data fusion)

8. Deploy statistical techniques for data interpretations

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Action Step 6: Report

Accountability by its very

nature means Reporting

Monitoring and reporting

results enables fact-based

decisions

Metrics and KPIs (key

performance indictors) are

the building blocks for

creating a dashboard


What is a Dashboard? A „multidimensional‟ view of

data and their interrelationships

Executive dashboards provide summary views of data and alert users to values that are significantly above or below expectations

Only work if they are tied to a structured action process

It must do more than just measure, needs to be used to foster decision making

“A dashboard is a visual display of the most important information needed to achieve one or more objectives; consolidated and arranged on a single screen so the information can be monitored at a glance.”

Stephen Few, Information

Dashboard Design (2006)

Page 25


A Marketing Dashboard

Has all the necessary dials and gauges to tell you where you are, where you‟re going and at what speed – along with indicator lights that illuminate at the first sign of a problem

Enables organizations to measure, monitor and manage business activity using both financial and non-financial measures

Provides an overview marketing objectives, and real-time insight on progress toward each objective


Use the Dashboard To

Show how marketing is moving the needle

Assess what is and isn‟t

working

Foster decision making –

is actionable

Provide a unified view into

marketing‟s value

Enable better alignment between marketing and the

business

Translate complex measures

into a meaningful and coherent set of information

Categories for the Marketing Executive Dashboard

1. Customer Acquisition and Retention

2. Customer Advocacy and Value (LTV, Margin, Loyalty, Share of Wallet)

3. Customer Equity

4. Product Innovation and Adoption

5. Competitive Positioning/Market Value Index (share of preference, rate of growth)

Page 26


Three layers to the marketing dashboard:

Executive level Strategic level – monitorsand measures performance against business outcomes and marketing objectives

Operational levelMarketing management – tracks performance of core marketing strategies and processes

Tactical levelFunctions and individuals – analyzes performance at project or activity level as they relate to the first two

Metrics Correlate to Dashboard Levels


Business Outcome Level Example – Two Outcomes

Market Share

Category Ownership

0

5

10

15

20

25

30

35

Time

Mark

et S

hare

Market Share Performance to Target

Market Share Target

Enterprise actual

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

FY08 1Q09 2Q09 3Q09 4Q09

Reve

nue

Time

Enterprise Performance to Actual

# 1 Player Target

Enterprise Actual

Page 27


Marketing Objective Level Example –Two Objectives – Margin and Marketing Contributed Deals

MarketingContribution

01002003004005006007008009001000

0200400600800

100012001400160018002000

2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Cost

Leads

Time

Market Share Outcome Lead and Cost Performance

Qualified lead target

Qualified lead actual

Margin –Number of Opps and Cost

0

200

400

600

800

1000

1200

1400

1600

1800

2000

0

20

40

60

80

100

120

140

160

180

2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Leads

Deals

Time

Market Share Lead and Deal Performance

Marketing Deals Target

Marketing Deals Actual




Campaign Level Example – Margin and Opps

Market Share Initiative: Campaign XYZ Lead to Cost Performance

02468

10121416

Qualif

ied

lead t

arg

et

Qualif

ied

lead a

ctu

al

cost/

qualif

ied

lead t

arg

et

cost/

qualif

ed

lead a

ctu

al

Leads

0

200

400

600

800

1000

1200

Dolla

rs Leads

Cost

0

0.5

1

1.5

2

2.5

3

3.5

0

2

4

6

8

10

12

14

16

Marketing Deals Target

Marketing Deals Actual



Deals

Lead

XYZ Campaign Lead to Deal Performance

3Q09

4Q09

Actual to targetresults and costssignificantly off –

ActionableWhat would you do?

Page 28


Example 2: Executive Dashboard

Brand Relevance Market Share

Product Adoption

Brand Relevance Index Share of Preference

Marketing Lift Conversion Rate

Customer Value Advocacy

Franchise Value

Product Adoption Campaign Overall Overall

Advocac

y

Sentiment – All Media

Favorability

Actual Target

Market X Market Y Market X Market Y

Product X Product Y

Overall


Executive Level Dashboard Example

1113 13

10

18

0

5

10

15

20

0

2000

4000

6000

8000

Nu

mb

er o

f D

ea

ls

USD

'K

2010 New Sales

# of Deals Monthly ActualCumulative Actual 2010 Cumulative

Target $

0

200

400

600

800

1000

1200

Actual Target

# of leads

# of

converted

lead

0%

10%

20%

30%

40%

50%

60%

70%

80%

Actual Target

Conversation rate

0

2

4

6

8

10

12

14

16

Actual Target

Cost per lead

0

5

10

15

20

25

Actual Target

Time to convert

(weeks)

0

2000

4000

6000

8000

10000

12000

Actual Target

Pipeline Contribution

Page 29


Crossing the Finish Line


Success Factors: Skills, Processes & Tools, Culture

Processes,

Systems, Tools

Skills & Training

Solutions to the problems of marketing accountability and creating a ROMI culture begin with training

(ISBM)

Culture

Create, reward and livea measurement culture

Page 30


Four Key Processes

Start

Event

Occurs

Decision

Event

Occurs

End

YES

NOEvent

Occurs

Outcome

Start

Event

Occurs

Decision

Event

Occurs

End

YES

NOEvent

Occurs

Outcome

Start

Event

Occurs

Decision

Event

Occurs

End

YES

NOEvent

Occurs

Outcome

Start

Event

Occurs

Decision

Event

Occurs

End

YES

NOEvent

Occurs

Outcome

Alignment Data Collection Performance Monitoring Metrics Analysis Target Setting Measurement

Reporting -Dashboards


Take the Next Step on Your Journey

1. Conduct an audit to identify alignment, data and process gaps

2. Assess the crucial skills marketers need and provide training

3. Identify and add the right talent, systems, and tools to help automate marketing processes and improve marketing performance

4. Leverage best practices and company insights for continuous improvement opportunities

5. Create and adopt a performance measurement and management strategy, system and framework that aligns marketing with the business outcomes

6. Engage the leadership team and form strategic partnerships with an extended team of finance, IT, sales, service, etc.

7. Create and align processes, policies and practices that insure the linkage between marketing programs and business results

8. Design and select metrics and clear standards of performance that enables marketing to measure its impact, effectiveness, efficiency and value

9. Create a multi-level dashboard to report performance and results in real-time to facilitate course adjustments and foster decision making - make it an iterative and collaborative effort

Page 31


Thank You and Questions

Metrics in Action: Creating a

Performance Driven Marketing

Organization

Workbook: It's More than Money on the

Line: Creating Metrics to Measure

Marketing‟s Effectiveness, Impact and

Value

Both are available at

www.visionedgemarketing.com

http://www.visionedgemarketing.com/

Documents

Marketing Metrics...(CMO Council) Still a Priority: •59% consider measuring Marketing performance to be a top-three priority for their company. •Accountability top priority for