Allocadia Webinar: Looking Forward & Back in Marketing Performance

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@allocadia#mktgperformance

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Your Hosts

James ThomasCMOAllocadia

Katherine BerryChief Product Officer & Co-FounderAllocadia

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Join Us on Social

#mktgperformance@allocadia

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What We’ll Cover Today

1. Understanding Performance• Past, Present & Future!

2. Setting Meaningful Targets• 5 Recommendations for next year

3. Real-world Scenario• Global Marketing Organization

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Intro

Performance:Are we spending to plan?

+What are we gettingout of that spend?

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The Path to Performance

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Challenges with Performance Data

Challenges…• Complex• Things change• No time• Status quo• Data in silos• Analytics expertise

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Analyst Data

Analyzing Performan

ceSource: VentureBeat Report: The State of Marketing Analytics: Insight in the age of the customer (2015)

Does your company formally evaluate your marketing analytics for quality and accuracy?

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Analyst Data

Source: VentureBeat Report: The State of Marketing Analytics: Insight in the age of the customer (2015)

In terms of total time spent generating analytics reports, what percent of your time is spent on the following:

Reporting on the

past

Analyzing

thepresent

Predicting/influencingthe future

Analyzing Performan

ce

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Recommendation: Gathering Data

Start With Either Past Or

Present

PresentPast

PresentPast

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Gathering Past Data

1. Finance systems1. Spend/Commit data

2. CRM 1. Revenue/Pipeline data2. Campaign Influence data

3. Marketing automation1. Campaign Results data

4. Social4. Brand Data

5. Web analytics4. Activity Data

Start with a view of what

you spent then work

your way up the funnel

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Gathering Present Data

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Recommendation: Metrics to Gather

CMO / VP of Marketing

Field & Corporate Marketing

Marketing Operations Efficiency | Bus, Mark, Org

Finance Accuracy | Org

Output | Marketing

Impact | Business

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Recommendation: Analytics Approach

Top-down vs. Bottoms-

up

Aggregated vs. Granular

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Reminder on Attribution

1Single Touch

100% credit to last or first touch

2Rules

Credit to each touch based on specific business rules

3Statistically DrivenCredit to each touch based

on a data driven model

Regression modelProbabilistic model

Evenly weightedCustom weighted

Time decayPosition based

First TouchLast Touch

SophisticationAccuracy / InsightCost / Complexity

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Recommendation: Gathering Future Data

Start with simply

combining Past Actuals +

Future PlanPast Actuals + Future Plan

= Forecast

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Setting Performance

Targets

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Components of Performance Measurement

• Goals• Targets• KPIs• And

motivation!

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The Importance of Performance Targets

Benefits Challenges• Focus• Accountability• Alignment• Motivation

• Too aggressive = cut corners

• Too moderate = not enough fire

• Morale can suffer when you don’t hit targets, important to re-adjust

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Recommendations for Performance Targets

1. Start with an understanding of the overall business goals.

Ensure marketing targets are aligned with company goals.

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2. Fine-tune your targets.

Historical data or present conditions will help you to make these small adjustments.

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3. Compare your targets to relevant benchmarks.

Historical, industry and analyst benchmarks can further optimize your targets.

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4. Internal communication is essential.

Well-defined marketing targets inspire marketers to define individual performance goals.

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5. Empower your marketers to hit targets

Well-defined strategic marketing plans help you to more accurately forecast and therefore hit targets.

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Scenario Planner Strategic AlignmentPlanner

Revenue PerformancePlanner

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Analyst Data

Reviewing Plans

Source: Ventana Research Next-Generation Business Planning Benchmark Research

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ExampleScenario

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Example Scenario

Creates the Strategic Plan

• Outlines top 3 strategic goals within a document

• e.g. Goal: Drive $100M in net new revenue

VP of Marketing, Monarch Tech Inc.Scenario: It’s September 2016. The company has just completed its yearly strategic planning conference.

1 Identifies High-level Targets2 Communicates

Plan to Stakeholders

3• Outlines top 1-3 KPIs

per goal• e.g. Target: Invest 10%

of revenue in marketing programs

• Share with C-level execs as well as Operations

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Example Scenario

Gathers Data

• Either manually or through automated connectors within a system like Allocadia

VP of Marketing Ops, Monarch Tech Inc.Scenario: It’s October 2016. He’s received the strategic plan and needs to operationalize it.

4 Analyzes Performance5 Fine-tunes Targets

& KPIs6• Through:

• Data visualizations• Audit trail

• Targets e.g. Starts with $100M marketing investment target divided into regions and business units

• Breaks it down to specific targets for particular Regions and/or BUs

• KPI e.g. All Business Units to be Over/Under Target by 3%

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Gathering the Data

Step 4: Ops has connected their investment and returns performance data to Allocadia.

313131Step 5: Ops uses Allocadia reports (& audit trail) to look at a historical FY view of performance.

Investment Target vs Actual Returns Target vs Actual

Analyzing Past Performance

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Example Scenario

Empowers marketers to build a strategic plan & hit targets!

• Gives them visibility into: • Functional Targets• Strategic Targets• Estimated Revenue Impact

VP of Marketing Ops, Monarch Tech Inc.Scenario: It’s November 2016.He now needs the marketing organization to build a plan that meets targets.

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333333Step 7: Marketers see functional and strategic targets as well as estimated revenue impact.

Empowering your marketers to hit targets

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Example Scenario

He presents the operationalized plan

VP of Marketing Ops, Monarch Tech Inc.Scenario: It’s December.He now needs to present the plan to stakeholders to demonstrate alignment.

8• Showing the plan is:

• On track to be on Target• Aligned to objectives• Has enough output to impact

revenue

353535 Step 8: A view of the strategic marketing plan aligned to targets.

The Strategic Plan

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Example Scenario

On-going Visibility into Performance – in Real-time

VP of Marketing Ops, Monarch Tech Inc.Scenario: It’s January.The marketing team is executing. He needs to monitor performance on-going and make adjustments to targets as need be.

9• Forward-looking view of performance• Can course correct early and often

373737Step 9: Monitor performance in real-time with a forecasted view of performance.

Future View of Performance

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Key Takeaways

1. Understand your business objectives to set meaningful targets.

2. Invest time in communicating those targets and giving marketers visibility into their progress.

3. Aim for a real-time forward-looking view of performance.

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Questions

Type your questions in the comment box

#mktgperformance

@allocadia

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Additional Resources

The Gold Medal Playbook of

Marketing Planning (eBook)

Strategic Planning for Modern

Marketers (Ventana Research

white paper)

Plus on-demand webinars:

• 5 Marketing Planning Best Practices to Achieve of your Objectives

• How to Align Campaign Plans & Budgets with SiriusDecisions & Allocadia

All available on the Resources section at allocadia.com

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Thank you!

James ThomasCMOAllocadia

Katherine BerryChief Product Officer & Co-FounderAllocadia

#mktgperformance

@allocadia