Just add data webinarJust Add Data: The Path to Better Marketing Results

Just add Data: The Path to Better Marketing Results

David LewisPresident

Kathy MacchiPractice Manager, Data and Insights

ITSMA Marketing Performance Management Survey

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Measuring Marketing’s Value: A Challenge for More Than a DecadeTop Priority:CEOs reveal that "enhanced return on Marketing investment“ is a top priority for Marketing. (ARF)

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)

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=1,545 )

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)

2000 2004 2005 2006 20092007 2008 2011 2012

Measurement Challenged:“Measurement Challenges Stump Marketing Executives” eMarketer, December 2011

Challenged to prove value:To prove their value and justify investment, they (CMOs) must tie marketing closer to business results Forrester, Evolved CMOS, July 2012

Analytics Challenged:• Only 50% of companies surveyed have an analytics program (ITSMA Marketing Analytics Survey)

Challenged to prove value:Less than 10% of C-level executives rely on marketing data to make decisions (ITSMA Data Driven Marketing Survey)Measurement

Challenged:Marketers measure past performance and short term goals with no link to strategy (ITSMA)

2014


The pressure on marketers to be more accountable is only increasing

“Only 44% of CMOs feel fully prepared to be held accountable for marketing ROI” IBM Global CMO Study

“Over 70% of chief executives believe marketers to be disconnected from business results and focus on the wrong areas…” Global Marketing Effectiveness, Fournaise


Today, the majority of marketers fail to meet expectations…

How satisfied are you with:

Note: Mean rating is based on a 10-point scale where 1=Not at all satisfied and 10=Extremely satisfied.Source: ITSMA/VEM Marketing Performance Management Survey,

10

9

8

7

6

5

4

3

2

1Not at AllSatisfied

ExtremelySatisfied

5.6Performance Improvement

The marketing organization’s

ability to manage its performance

5.5 5.3Analytics

The marketing organization’s

ability to examine data to create

insights

MetricsThe marketing organization’s

ability to measure its performance


90–100: Marketing was able to measure and report

the contribution of its programs to the business

80–89: Marketing programs made a difference,

but the contribution to the business goals were not measured and reported

70–79: Marketing appears to have made some

impact on the business, but it is not clear if the impact was material, nor is it measured

69 or lower:

Marketing programs didn’t make a difference—there is no clarity as to how marketing is contributing to the business

…but a few exceptional marketers have cracked the code

Using a 100 point scale, please select what grade the CEO (or you, if you are the CEO) would give your marketing organization for implementing initiatives that enable your company to achieve its objectives.

Source: ITSMA/VEM Marketing Performance Management Survey

25%

33%

33%

9%

A B C D


The A’s can clearly demonstrate their value and contribution

PLUS they are more satisfied with:• Their relationship and

reputation with the business and executive leadership

• Their ability to: – Allocate marketing resources

more effectively– Predict the outcomes of

marketing programs and campaigns

Marketing’s Financial Value is Clear% of Respondents Who Strongly Agree or Agree

84

55

35

The “A’s”

Middle of the Pack

Laggards

Note: Differences are statistically significant.Source: ITSMA/VEM Marketing Performance Management Survey


AWhat do the “A’s” know that the others don’t?


The A’s have a game plan for performance management

AlignmentAccountability

AnalyticsAutomation

AlliancesAssessment


Series1

96

91

90

89

70

51

67

50

38

Alignment: The A’s create direct line-of-sight between marketing activities and business results

How strongly do you agree or disagree with each of these statements?% of Respondents Who Strongly Agree or Agree

Note: Differences are statistically significant.Source: ITSMA/VEM Marketing Performance Management Survey,

The link between marketing activities and business goals is clear

It is clear to the leadership team how marketing is impacting the

business

Marketing is good at measuring its contribution

The “A’s”

Middle ofthe Pack

Laggards


Employ an alignment technique

Key StepsGet clarity around business outcomes.Start thinking “data chains”.


Data Chains Are Essential


Accountability: The A’s use metrics and dashboards to make fact-based decisions and strategic recommendations

How strongly do you agree or disagree with each of these statements?% of Respondents Who Strongly Agree or Agree

45

63

84

The “A’s”Middle ofthe Pack Laggards

Marketing is good at using data and analytics to make …

Course adjustments

Strategic recommendations

44

64

82

The “A’s”Middle ofthe Pack Laggards

Note: Differences are statistically significant. Source: ITSMA/VEM Marketing Performance Management Survey


Adopt a metrics framework

Key StepsMake sure your metrics pass the “so what?” test.Ensure your data capture strategy aligns with your metrics.

Source: Wikipedia; The Marketing Metrics Continuum provides a framework for how to categorize metrics from the tactical to strategic.

Counting Efficiency ImpactLikelihood of Outcomes

Expected Outcomes

• Number of Downloads

• Events Produced• Number of Leads• Click Through

Rates

• Campaign ROI• Program Spend/

Headcount

• Pipeline Contribution

• Market Share• Lifetime Value

• Share of Wallet• Rate of Growth:

Market

• Propensity to Purchase

• Likelihood to Renew

Activity Outcomes

OperationalOutcome-

BasedLeading-

IndicatorsPredictive

Activity Metrics


Marketing Overview


Key Metrics

322

June

MQLGoal: 4,000

125

June

SALGoal: 1500

3.9%

June

ConversionGoal: 3%

1,467,322

June

VisitsGoal: 4,323,3625

583,023

June

Unique VisitorsGoal: 4,323,3625

3.75

June

Average TimeGoal: 4min

YTD YTD

YTD YTD


Demand Funnel SnapshotCurrent Month & Quarter: Created-to-Date vs. Demand Plan

$20M80%

PIPELINE $25M5M REMAINING

56447%

SAL 1200636 REMAINING

87525%

MQL 35003,125 REMAINING

TODAY 55%Q2

$3.1M45%

PIPELINE $7M3.9M REMAINING

31975%

SAL 425106 REMAINING

47668%

MQL 700224 REMAINING

TODAY 71%May


Analytics: The A’s leverage data, analytics, and modeling to discern patterns, glean insights, and predict outcomes

Which statement best describes how marketing uses data to create models for the purpose of optimizing marketing investments and performance? % of Respondents

Marketing uses statistical analysis tools to create marketing optimization models

Marketing builds models using spreadsheets to create marketing optimization models

Marketing does not create any models with its data

The “A’s”

57%

31%

12%

Source: ITSMA/VEM Marketing Performance Management Survey


Derive actionable insights from data

Key StepsCreate a data inventory.Conduct a data assessment. Review your data processes and policies


The “A's”

Middle of the Pack

Laggards

Budget management

Data analysis

Data collection

Performance measurement reporting

Database management

Market research

Selection of software tools for marketing

Marketing staff training and professional development

Performance measurement development

Forecasting

Evaluation of software tools for marketing

Performance benchmarking

Management of software tools for marketing

Marketing skills assessment

Predictive modeling

Automation: The A’s invest in systems, processes, and tools to track, measure, and report results

Source: ITSMA/VEM Marketing Performance Management Survey, July 2012

Which of the following responsibilities are included in your company’s/organization’s marketing operations function? Included by 50% or More

LaggardsMiddle ofthe Pack

The“A's”


Reporting/Dashboard

MetricsAnd

Target Setting

Data Collection Capture

and Analysis

Marketing and Sales Alignment /

Lead Management

Implement marketing measurement, processes, tools, and systems

One Key Step

Invest in tools to automate report generation and dashboard updates.


Alliances: The A’s formally collaborate with the sales, finance, and IT organizations

Note: Differences are statistically significant.Source: ITSMA/VEM Marketing Performance Management Survey

How would you describe marketing’s relationship with ______?% of Respondents Describing Relationship as Strong or Exceptional

The “A’s” Middle of the Pack (

Laggards

Sales

Finance

IT

65

3730

56

2416 43

299


Enroll IT, Finance, and Sales in collaborative formal partnerships

Key StepsImplement lead scoring to ensure marketing leads are sales ready. Develop an opportunity analysis report to ensure scoring works.


Assessment: The A’s benchmark and audit marketing performance with an eye toward continuous improvement

How satisfied are you with: Mean Rating

Note: Mean rating is based on a 10-point scale where 1=Not at all satisfied and 10=Extremely satisfied.abc Indicate a statistically significant difference.Source: ITSMA/VEM Marketing Performance Management Survey,

6.9ab

5.8ac

4.7bc

Performance Improvement: The marketing organization’s

ability to manage its performance

The “A’s” (N=88)

Middle of the Pack(N=118)

Laggards(N=137)

Not at all satisfied Extremely satisfied


Where are you on the Marketing Performance Management Journey?

Track Marketing Activity andManage Metrics

JustifyMarketing’sValue

Improve and ManageMarketingPerformance

ImproveBusiness

Outcomes

The“A’s”

Middle ofthe Pack

Laggards

One Key StepConduct an audit or benchmark of your current environment.


AThe A’s have a game plan for performance management – What’s your next move?

Alignment

Accountability

Analytics

Automation

Alliances

Assessment

Data


Summary• Alignment

– Get clarity around business outcomes.

– Start thinking “data chains”.

• Accountability– Make sure your metrics pass the

“so what?” test.– Ensure your data capture strategy

aligns with your metrics.

• Analytics– Create a data inventory.– Conduct a data assessment.– Review your data processes and

policies

• Automation– Invest in tools to automate report

generation and dashboard updates.

• Alliances– Implement lead scoring to ensure

marketing leads are sales ready.– Develop an opportunity analysis

report to ensure scoring works.

• Assessment– Conduct an audit or benchmark of

your current environment.


Contact me:

Kathy MacchiPractice Manager, Data and [email protected]