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Takeaways
• Plan for Success• Maintain Financial Records• Measure Strategically• Use the data to learn and change
– Sample – Internal Revenue Metrics– Sample - Internal Effectiveness Metrics
• Continuous improvement• Pipeline Forecast - Key to CxO Respect• Checklist - What not to do
Plan for SuccessApproach• Start with a complete marketing investment plan• Get agreement from key stakeholders• Focus on what the decisions the metrics will drive .. e.g. “improving ROI”• Quantify goals expected outcomes / impact - (Keeps CFO off your back)
• Assign up front Marketing goals, internal benchmarks, targets, KPI's• Step 1 – believe that the CFO’s PO justifies an answer to .. “If I get this
money what would I expect to get back form this“ • Step 2 – establish an agreed ROI mechanism / template with CFO
– NB: Remember that ROI needn't always be +ve … depending on the objectives , but by establishing this – More likely to get CFO to support investment.
• Step 3 – use it routinely – each program should have an ROI Plan – Document assumptions in a spreadsheet– Having a spreadsheet before asking for money – means you are talking CFO language – this
gives you credibility and ”air cover”
Maintain Financial Records• CxO’s care about
revenues & profits (external metrics)
• Identify key drivers• Model• Set targets up-front
before spending money • Use performance vs.
targets to adjust goals • P-D-C-A: continuous
improvement cycle
Budget Planned ActualTotal Marketing Expense 25,000$ Credits 5,000$ Net Marketing Cost 20,000$
Average Sales Cost per Lead 40$ # Leads Generated 5,000$ Cost to Sales 200,000$ Total Investment 220,000$
Marketing ImpactAwareness - Impressions - # Audience Reached 4,000$ Marketing Lead Rate 125%Incremental Leads 5,000$ Marketing Cost per Lead 4$
Sales ImpactIncremental Leads 5,000$ Close rate 15%Incremental Sales 750$ Av Rev Per Sale 1,000$ Total Incremental Revenue 750,000$ Average GM 45%
Total Incremental GM 337,500$
Total Return 117,500$ ROI 53%
Measure StrategicallyArea Why Backward / Lagging Current / What's
WorkingFuture / Leading
Revenue/
[ Topline impact ]
Impact on Company Revenue
• Actual Vs. Target
• Conversion Rate
• Marking Projections..
• Prospect DB
Program Performance
[Efficiency / Effectiveness]
Financial Contribution of Programs
• Investment Return
• Program ROI
• Response Rate
• Projected Contribution
Customer Profitability
[Intangible]
Lifetime Value of a Customer
• ASP • Cost to Acquire a New Cust
• NPS• Retention
Pick M
aximum 5 M
etrics O
NLY
Use data to learn & change
• More important to operationalize ROI in DNA of the marketing organization
• Intangibles, metrics and data just as important … - Marketing is not just about DG and
Revenue – its about insight, direction and the future
• Gather other key internal data points. For internal consumption
• Communicate
Internal Revenue / Biz Outcome Metrics Awareness Prospects Leads Opportunity Bookings Post Sale Investment
Web Visits # Prospects New Active Leads
Mktg Gen Total Retention / Churn
$DG / Prospect
Blog Subscribers
Size of Prospect List
Old Leads Sales Gen
By Segment $ DG per Opportunity
F/book ? Inbound Leads
Referral Gen ASP ROI on Program
SEA Leads SEA Leads Av. Discount Total Mktg Investment/ Opportunity
ANZ Leads ANZ Leads
CN etc. CN etc.
Lead to Opp Conv %
Quality Is Better than Quantity
Internal Effectiveness Metrics Email Seminars Comms Web Online Ads DM Customer
Unsubscribes Attendees # Press Releases
Views / Visitors
Impressions Eyes On Churn
Bounce Drop offs # Interviews Unique Views CPC Delivery Customer Lifetime Value
Open Rate Engagement Rate
# Press Events
Conversions CPM Response SOW
Click Throughs
Coverage / Sentiment
CPC CPC NPS
Share of voice
CPA Customer Engagement
Quality Is Better than Quantity
Continuously Improve
• Communicate to all parts of the organization– via tools – what's learned, what's urgent, and what's relevant – what's coming next and what we will do next
• Weekly physical dashboard near a coffee machine…. Create the excitement
• Publish topline – bottom-line and intangible performance
• Alignment of Mktg objectives to company objectives
• Continue to work on refining these
Pipeline Forecast - Key to CxO Respect• At sales & board meetings – most of the
discussion is about sales forecasts… you need to be part of this discussion with sales
• Sales is good at forecasting short term – very bad at long term … ( e.g. top of funnel )
• Marketing should own the top of the funnel - this is a leading indicator of future sales success
• To do this – you need to model this and forecast what you see the future environment looking like – using data This is an area that I have some expertise in .. But I have not included this in this slide Deck – Better to discuss Face on Face
Checklist - What Not to do
• Do other metrics rather than business metrics
• Measuring what is easy• Focusing on quantity and not quality• Measuring activity not results• Measuring efficiency not effectiveness• Measuring cost – – remember marketing is an Investment area not
a cost Centre
Loyalty and Customer Profitability
It requires funds for both acquisition & retention
Bain and Co : Credit Card Industry Example
Effect of Retention on Customer Profitability Cumulative Impact of Retention Focus
Average Great Retention
5x
