BrightTALK_Measuring Marketing Effectiveness

7/27/2019 BrightTALK_Measuring Marketing Effectiveness

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Measuring Marketing Effectiveness

.key metrics & techniques

Debbie WilliamsB2B ConsultantChair of the IDM B2B Councile: [email protected]

B2B Council: http://tiny.cc/B2BMktg


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What constitutes Return on Marketing Investment?

> Determining appropriate metrics and ensuring a means ofmeasurement is key to driving efficiency & effectiveness.

> Different Marketing expense categories are subject todifferent metrics and measures of success.

e.g. Advertising drives changes in perception, measured byresearch; lead generation creates sales opportunities

resulting in revenue.> Few Marketing activities directly drive short-term revenue,

and none without Sales engagement. Therefore revenueis only in selected cases an appropriate measure ofMarketing ROI.


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So, what IS the definition of Marketing Success?

> Profitable revenue closed & growing

> Strong Order momentum / increased Opportunities to bid

> Greater Customer Acquisition

> Lower Churn rates & rising Customer Satisfaction

> Higher Customer Lifetime Value> Greater share of wallet

> Improved brand sentiment ..

ROI is the profits generated over and above the initialinvestment and expressed as a percent of the investment .


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BUT.It is not easy!

> Different data sets in different formats

> Data in different systems or simply not available

> Siloed and/or multi-national organisation or outsourcedactivities

> Lack of standard, benchmarked metrics

> Do not control the sales pipeline & closure> Disconnected channel partner tracking

> Common mistake is to focus on tactical channel by

channel performance> Explosion of marketing media channels based on end user

preference


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chemistry digital 2007


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How to measure Marketing Effectiveness


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Marketing Effectiveness Components

Target setting to be aligned to the Business

Plan and specifically measurable

Integration and automation to improve end

to end efficiency and control

OrganisationalAlignment

OrganisationalAlignment

Shared Sales and Marketing goals toimprove revenue. Change in Culture.

Managing Data as a strategic asset usingmulti-channel customer insight

Driving Valuefrom Data

Driving Valuefrom Data

MarketingEffectiveness

Measurement

MarketingEffectiveness

Measurement

Clear Stretch

Marketing Targets

Clear Stretch

Marketing Targets

Process and

SystemIntegration

Process and

SystemIntegration

Integrated, engaged & relevantcommunications approach to deliver results

IntegratedCommunications

IntegratedCommunications

Target setting and analysis to improveaccountability


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Prospect/Customer Lifecycle Measurement

Commitment

V

alue

Suspects

Prospects

Customers

Repeat Customers

Advocates

* Sale Conversion Rates* Cost Per Qualified Lead

Share of Wallet

Customer Value

Referral Rates

Predict ive ModellingFor Prospect Targeting

& valued Data Purchase

Iterative Message revision

Media mix analysis & trending

Real time behavioural analysis

Up sell & Cross Sell

Success rates


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Marketing Sherpa B2B Tech Marketing

Metrics Benchmarks 2009


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Brand Sentiment Tracking

> Measurement tactics:

Awareness (prompted / unprompted)

Familiarity, associations, perceptions Reputation

Favorability, preference

Relationships, advocacy

Review and monitor existing & future ESAT and CSAT

> Measurement Techniques

Quantitative brand tracking research via interviews /

surveys Monitoring On-line reputation via social media analytics


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Online Behavioural Tracking

Linkage with Salesforce.com


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13


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Leading Metrics for Lead Generation

Campaign Success


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Customer Touches 5,066,400

Responders 25,332

Leads 6,333

0.5%

25%

5k an orderAverage transaction

1,900

Orders

CPA: 120

CPA: 480

CPA: 0.6p2666 prospects

13 responders

3 leads

1 customer

9,500,000REVENUE

30%

3.133,000 budget

CPA: 1600

3:1 ROI


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Return on Investment

$ net margin on sales = $1000 = 10

$ acquisition cost $100

Easy to compare Campaign A to Campaign B

$ sales value over 12 months = $2000 = 20:1

$ acquisition cost $100

Yield Rate of Payback


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Life Time Value (LTV)

> Lifetime Value is the total net benefit that a customer orgroup of customers will provide a company over theirrelationship with the company.

> Modelling is based on estimating the average income(profit) and costs associated with the customer over aperiod of time, then calculating the net present value in

current monetary terms using a discount rate.> It answers the question: how much can you afford to

spend on acquiring a customer and still make money


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Marketing Digital Dashboard

Real Time Reporting


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Provide management with a pipeline forecast


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Volume

Share of voice

Sentiment

Who & Where

Key Themes

Measuring Social Media

impact on conversations


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Measuring Effectiveness through the

Influencer Cycle

IdentificationReach

Frequency

Expertise

Independence

Persuasiveness

Thoroughness

Relationship and InfluencerEnablementInvestment in your time

Frequency of contact

Depth of engagement

Depth of proposit ion knowledge

Results# Brand mentions salesforce.com

# Message mentions cloud computing, Chatter

Web traffic trends

# Referrals/leads/salesPerception /Tone

Accuracy

Frequency

Consistency

Value add

Share of voice


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B2B Barometer Survey 2010:

Effective Budget Spend


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Top 5 Tips for Measuring Marketing

Success1. Look at both strategic & tactical elements

2. Set marketing performance metrics within context of

Industry & Competitor benchmarks, as well as historicperformance

3. Right blend of organisational structure, expertise,

outsourcing & technology4. Agility to respond to changes in real-time through

repeatable processes

5. Communicate marketing success to the Board!


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Thank You!

Questions?

Debbie WilliamsB2B ConsultantChair of the IDM B2B Councile: [email protected]

B2B Council: http://tiny.cc/B2BMktg

Documents

BrightTALK_Measuring Marketing Effectiveness