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Marketing organizations are under more pressure than ever to create business value. Yet only ¼ of marketers say they are able to measure and report the contribution of its programs to the business. What separates the “A” marketers from the rest? The “A”s have the right mindset, believe it’s possible, and make measurement a priority. In addition to the right mindset, the “A”s have nailed the five fundamentals of aligning marketing activities to business results. 1. They get clarity around the business outcomes that matter the most by speaking the language of the business and having regular two-way dialogue with senior executives. 2. They track and report outcome metrics that measure impact, not just metrics that track activity, output, and marketing efficiency. 3. They set quantifiable performance targets for every program and activity. 4. They use data chains to create clear lines of sight between marketing investments and business outcomes. 5. Finally, the “A”s use marketing dashboards to track its effectiveness but also to communicate impact on business outcomes, allowing them to justify additional budget.
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Note: This Abbreviated Summary highlights some of the significant findings from 2014 ITSMA/VEM Marketing Performance Management Survey:
The Link Between Marketing Performance Management and Value CreationA more in-depth analysis can be found in the full report available for purchase at:
http://www.itsma.com/research/2014-itsma-vem-marketing-performance-management-survey/
Abbreviated Summary | May 2014
The Link Between Marketing Performance Management and Value Creation
2014 ITSMA/VEM Marketing Performance Management Survey
Julie Schwartz, Senior Vice President, Research and Thought Leadership, ITSMA
Laura Patterson, President, VisionEdge MarketingDianne Kim, Research Associate, ITSMA
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Study HighlightsThe SituationDespite marketers’ perceptions that they are improving, the percentage of “A” marketers has remained relatively constant.
Marketers must move from campaign producers and sales enablers and seize the role of business value creators. Until marketers speak the language of the business and demonstrate value, they will be viewed as overhead.
The Right Mindset1. The “A’s” believe they can measure marketing’s
value and make it a priority
2. The “A’s” hold themselves accountable, even if senior leadership does not
3. The “A’s” have a plan for continuously improvingmarketing performance management
Nailing the FundamentalsIn addition to the right mindset, the “A’s” have nailed the 5 fundamentals for aligning marketing activities to business results
The value creators: Get clarity around the business outcomes that
matter by engaging in regular two-way dialog with senior executives
Select outcome metrics, in addition to activity, output, and efficiency metrics
Set and track quantifiable performance targets Establish clear data chains to link marketing
investments and activities with business outcomes
Build actionable dashboards to communicate impact on business outcomes and secure additional budget
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Marketing organizations are under more pressure than ever to create business value
% of Respondents (N=380) | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
How do you see the pressure on marketing to measure its value and contribution to the business?
1% | Decreasing
85%Increasing Staying the Same14%
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
90–100Marketing was able to measure and report
the contribution of its programs to the business
80–89Marketing programs made a difference but the contribution to the business goals were
not measured and reported
70–79Marketing 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
Still, only 1/4 of marketers can answer the question, “What is marketing’s impact on the business?”
% of Respondents (N=379) | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
26%
40%
28%
6%
For 2013, using a 100 point scale, please select what grade the CEO/Division GM would give your marketing organization for its ability to demonstrate its value and contribution to the business.
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Where are you on the Marketing Performance Management Journey?
What do you need to do to be best-in-class?
Campaign Producers
SalesEnablers
Business Value Creators
The“A’s”
Middle ofthe PackLaggards
Track Marketing Activity and
Output
Contribute toBusiness
Outcomes
Improve and ManageMarketing
Performance
Activity Outcomes
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Two things distinguish “A” marketers from the rest of their peers
The Right Mindset
Nailing the fundamentals of
aligning marketing activities to
business results
&Sooner or later,
those who win are those who think they can.
Paul Tournier1. Get Clarity Around the
Business Outcomes
2. Select the Right Metrics
3. Set Quantifiable Performance
Targets
4. Establish Clear Data Chains
5. Build Actionable Dashboards
What needles does marketing have to move?
Outcome-based, leading indicators, and predictive
Well-defined and documented for each marketing program
Between marketing activities, marketing objectives, and business outcomes
Regularly presented to and reviewed with senior leadership
The “A’s” believe they can measure marketing’s contribution to the business and hold themselves accountable
Note: Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
In your organization or company, how important is it that marketing is able to measure its value and contribution to the business?
Believe It’s Possible
16%
37%
59%
It is difficult, and perhaps even impossible, to measure marketing’s contribution
to business outcomes
The “A’s” (N=98)
Middle of the Pack (N=151)
Laggards (N=127)
% of Respondents that Agree or Strongly Agree
Does your marketing organization have a revenue goal?
65%41% 38%
The “A’s” (N=83)
Middle ofthe Pack (N=120)
Laggards (N=104)
Hold Themselves Accountable % of Respondents with a Revenue Goal
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
71%71%The majority of the marketing
staff has business acumen
1. Get Clarity Around the Business Outcomes
% of Respondents that Agree or Strongly Agree
The “A’s” (N=97)
Middle of the Pack (N=148)
Laggards (N=122)
The “A’s” speak the language of the business and regularly engage in two-way dialog with senior executives
Note: Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
58%58%41%41%
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Activity Outcomes
Effort Counting Efficiency Impact Likelihood of Outcomes
Expected Outcomes
The “A’s” (N=81) 78 82 83 90 47 47
Middle of the Pack(N=116)
75 81 69 61 37 28Laggards
(N=99) 70 68 57 48 24 20
Output-Based* Operational* Outcome-
Based*Leading-
Indicators* Predictive*Activity Metrics
% of Respondents Tracking Metric Category
* Indicates a statistically significant difference. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
The “A’s” track and report outcome metrics in addition to activity, output, and efficiency
2. Select the Right
Metrics
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
The “A’s” not only set quantifiable performance targets, but they track their performance against those targets
% of Respondents (N=303) | *Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
32
52
10
5
1
6
34
35
20
5
Nearly every marketing program has well defined anddocumented performance targets and we measure our
performance against those targets
Many, but not all, marketing programs have well definedand documented performance targets
Few marketing programs have well defined anddocumented performance targets
We do not usually set qualtifiable performance targets forour marketing programs
Don't knowThe "A's"Everyone Else
3. Set Quantifiable Performance
Targets
To what extent does your marketing organization set quantifiable performance targets for marketing programs and objectives?
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
The “A’s” are using data chains to create clear lines of sight between marketing investments and business outcomes
Note: Differences are statistically significant. Source: ITSMA and VisionEdge Marketing, 2014
Business Outcomes
Market ShareGrow revenue for cloud/mobile
offerings in NA Tier One Accounts by 15%, secure 17%
market share
Marketing Objectives
Pilot projectsIncrease new pilot
projects among NA Tier One Accounts by 35% resulting in 5 full RFQs
Marketing Programs
SeminarsConduct 15 seminars in major
NA cities, resulting in 20 meeting requests to explore
pilot projects
Marketing Tactics
Digital MarketingInitiate email campaign to
promote cloud/mobile thought leadership assets to 5,000 NA contacts at Tier One Accounts, resulting in
300 seminar RSVPs
4. Establish Clear Data
Chains
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
The “A’s” use their marketing dashboards to boost marketing’s effectiveness, communicate impact on business outcomes, and secure additional budget
% of Respondents | Note: Differences are statistically significant. | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
Does your marketing organization currently produce a marketing dashboard?
45%61%73%
5. Build Actionable Dashboards
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Methodology
Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
Web-based Survey
Survey invitations were emailed during April 2014 to the ITSMA and VEM communities. In addition, survey invitations were extended via social media channels such as Twitter and LinkedIn.
380 people completed the survey
The Data Was Analyzed by:
A’s: Marketing demonstrates contribution to the business (Grade: A)Middle of the Pack: Marketing
makes a difference, but contribution not measured (Grade: B)Laggards: Marketing may have
an impact, but not known if impact is material (Grade: C/D)
MarketingPerformance
Grade
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Respondent Demographics
42%
40%
18%
Type of Company
% of Respondents (N=380) | Source: ITSMA/VEM Marketing Performance Management Survey, May 2014
Job Title
Industry
Software solutions
IT professional services/consulting
Marketing services/advertising agency
Other services
Telecommunications and network systems and solutions
Other business services
Other product manufacturing
Other technology hardware systems and solutions
Computer systems and solutions
Financial services
Management consulting
Outsourcing (technology/business process)
Other
1513
128
77
666
5556
Size of Company
32
6
10
6
17
8
22
Lessthan$50M
$50Mup to$99M
$100Mup to$499M
$500Mup to$999M
$1Bup to$4.9B
$5Bup to$9.9B
$10Bor
more
33%
28%
25%
14%
Sell both products and
servicesPrimarily sell services
Primarily sell products
C-level/VP
Director
Manager
Individual contributor
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
Table of Contents for
For More InformationJulie SchwartzSenior Vice President Research and Thought [email protected] | +1-407-788-8220
2014 Marketing PerformanceManagement Survey: Increasing
Marketing’s Relevance to the Business
Laura PattersonPresidentVisionEdge [email protected]+1-512-681-8800, Ext. 12
SlideExecutive Summary 3Methodology and Respondent Demographics 32Detailed Findings 45
Marketing Contribution to the Business 45Use of Data and Metrics 72The Marketing Dashboard 87
Appendix: Study Definitions 107
©ITSMA/VEM 2014 Marketing Performance Management Survey. All rights reserved. Not for reproduction or redistribution without permission.
About ITSMAITSMA is a research-based membership organization that helps B2B companies market and sell services and solutions more effectively. They work with the world’s leading professional services, technology, and communications providers to generate increased demand, strengthen customer relationships, and improve brand differentiation.
About VisionEdge Marketing VisionEdge Marketing provides proven expertise to help companies improve marketing accountability, measurement and analytics; create outcome-based marketing metrics; develop dashboards; leverage processes, data, systems, and use data and analytics to make strategic market, customer and product decisions.