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Gaining Insight Into Marketing Results: The Value of a Marketing
Dashboard
Laura Patterson
President & Author
Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2010 VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. 2
Founded in 1999 and headquartered in Austin, TX, VisionEdge Marketing, Inc. serves more than 100 customers, and counting.
VisionEdge Marketing, Inc. is a data-drivenand metrics-focused marketing firm
that specializes in improving marketing performance and creating competitive advantage designed to attract, secure and retain profitable customers.
Services Include:
Marketing performance management
Marketing and sales alignment
Product and strategic marketing
Pipeline re-engineering
Professional development
About VisionEdge Marketing – Experienced Practitioners
Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2010 VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. 3
Session Objectives
1. The State of
Marketing
Performance
Management
2. The Role of
Marketing Ops in
MPM
3. Marketing Ops MPM
Roadmap and Tools
4. The Dashboard –
the ultimate
performance
management tool
““Need the math behind the creativity,”
John Seifert, chairman-CEO of Ogilvy & Mather North America
“The top challenge for marketers remains to better quantify and measure the value of marketing programs," in spite of improvements in accountability over previous years. CMO Council
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The Business Climate Remains Challenging
Tough economic
environment
Constant change
Tougher buyers
More competition
Increasing
complexity
Reduced business
investment
Overall we're seeing sales cycles
getting longer –
• 7% of sales executives report a
more than a 25% increase in the
length of their sales cycle
• 8% of sales executives report that
they now need 25% more leads to
close a deal.
(IDC 2009 Tech Sales Barometer, released
January 2009 and CSO Insights)
Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2010 VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. 5
Increased Focus on Accountability
Marketing is under increasing
pressure to:
Show impact on the
business
Demonstrate
accountability
Communicate its value
“While proving ROI on marketing
performance is nothing new, the
recession increased the emphasis on accountability and analytics, and this
will continue even as a recovery gets
under way.” BtoB 1/18/09)
Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2010 VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. 6
Why Companies Invest in Marketing
Understand the market and customers
Develop and execute a strategy to create
preference and consideration that enables the
organization to
Acquire more of something
Acquire it faster
Acquire it cheaper
Otherwise, might as well just put more feet on the
street
Need to demonstrate we are “getting the job
done”
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Marketing’s Job is to Produce
1. Find Profitable Customers
The process of acquisition
New customer acquisition – net new
business
2. Keep Profitable Customers
The process of retention/renewals
Engaged customers more likely to
renew
3. Grow Profitable Customers
The process of increasing the value of
your customer franchise and brand -
cross-selling
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These Three Roles Relate to What Matters in Business
Find/SecureProfitableCustomers
Acquisition
KeepCustomers
Penetration
GrowCustomer
Value
Monetization
Market Share Lifetime ValueBrand/
Customer Equity
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Best-in-Class Marketers Leverage These Capabilities
Measurement Competence
Analytics and Skills
More Strategic Metrics
Better Tools and Process
Nearly everyone says
business with existing
customers is important, few
use metrics such as•length of customer tenure,
purchase frequency and
recency, value of the overall
customer base, customer
lifetime value and share of wallet
•Other than leads to
conversion, track little else.
(VEM 2009)
•“Shockingly low investments in marketing technology and still immature processes” (IDC Dec 2008)•“Real success will come from being smarter and more strategic in operations” (B-B 2009)
“Lack employees with specific marketing analytics expertise”(Forrester 2008)“Less than half of respondents use analytics”(Alterian 2009)
“Pressure has mounted on marketers to accurately predict, measure, and optimize results”(Marketing Sherpa 2009)
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These Organizations have Made A Transformation
To Being Performance Driven - They
Design and select metrics that
measure marketing‟s impact on the
business
Ground metrics in data and analytics
Use metrics that measure efficiency,
effectiveness and payback
Create a measurement management
system and consistently use it
Capture performance metrics as
quickly as possible in order to instigate
immediate change in execution
Report results and performance in real- time
Performance Management
…the process of measuring progress toward achieving key outcomes and objectives in order to optimize individual, group or organizational performance.
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Have a set of measurable
performance standards, a pointed
focus on outcomes, and clear lines of accountability - all of which are
important if a marketing organization wants to prove its value.
What is a Performance-Driven Organization?
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5 Characteristics of a Performance-Driven Marketing Organization
1. Established clear standards of performance and metrics
2. Aligned resources, policies, and practices
3. Results tracked and reported against performance standards
4. Data and performance target are
used to drive continuous improvement and to hold the entire system accountable for performance.
5. Analytics are used to facilitate fact-
based decision making
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The Rewards of a Performance-Driven Marketing Organization
Better insight into customers – what they
want and what messages will resonate
Greater message continuity
More effective allocation of resources
Fewer underperformers on the sales
team
Higher win rates
Improved customer acquisition and retention
Stronger customer loyalty and equity
Greater customer share of wallet
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Performance-Driven Marketing Organizations Adopt Five Best Practices
Create a performance measurement system
based on data and analytics
Adopt a framework that identifies metrics that
impact organization‟s economic performance and strengths
Link marketing to business outcomes
Embrace a culture of accountability
Add the right skills, systems, and tools
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Hence the Emergence of Marketing Operations
Marketing Ops owns the processes, infrastructure and reporting that enables
Marketing to operate more like a
business, with formalized
At a minimum, Marketing Operations
should:
1. Drive the processes for budgeting and investment decisions and more effective
strategic planning.
2. Identify and implement the required infrastructure to maintain the consistent implementation of processes.
3. Lead the charge for marketing
performance measurement processes.
Marketing Operations
Defined:
An operational discipline
that leverages processes, technology, guidance and
metrics to help run the
Marketing function as a fully-accountable
business.
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Marketing Ops – Organizational Glue
Reinforces the marketing strategy and tactics with a scalable and sustainable infrastructure, to
create and nurture a healthy, collaborative
ecosystem, and to help derive achievement of
the enterprises business outcomes.
Provides the infrastructure and policies that are
necessary to coordinate marketing activities.
Assures that both the marketing spending and
the marketing mix are based on solid financial
terms.
Serves as an interpreter by translating the
languages between the marketing and finance.
Operates with a performance dashboard that is
consistent with the enterprise‟s strategy m
Facilitates the translation between budgets, marketing activities, and accomplishments into
a language that is meaningful to finance and
the rest of the leadership team.
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Six Steps for Creating a Marketing Ops Function
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Marketing Ops Roadmap Components
DataProcessApplications
SystemsTools
Organizational StructureOrganizational PrioritiesMarket and Competitive
Assessment
PlanningProcess Engineering Analytical
Target SettingMeasurementBenchmarking
CharterScopeResponsibilities
RoleTiming
PlanResourcesAdoption Management
MaintenanceBenefit TrackingCost and Timing
Marketing Operations
StrategicContext
CapabilitiesAssessment
Business Case and Functional Design
Implementation
People AlignmentCulturePolicies
Change Management
Infrastructure
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Marketing Ops – The Science Side of Marketing
1. Defines strategy and align initiatives, metrics, people and tasks with the
organization‟s business outcomes
2. Works with the marketing leadership team in the development of the marketing plan
3. Supports marketing personnel to ensure they are focused on and
measuring their contribution to the
marketing objectives, strategies, programs and activities
4. Monitors the marketing organization‟s progress against performance targets and detects gaps and problems
5. Measures performance using key performance indicators (KPIs) so that
issues and gaps can be resolved early
Marketing opsis pivotal to transforming Marketing into a performance-driven organization.
It plays an instrumental role on your road to marketing excellence.
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Marketing Ops Facilitates Accountability
Accountability by its very
nature means Reporting
A monitoring and reporting results enables fact-based
decisions
Marketing Ops is instrumental in creating
and managing the
dashboard
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AMA Defines of Marketing Accountability
Truly accountable
marketing requires
that marketers
demonstrate
alignment between
marketing
expenditures and
anticipated results,
and that this
alignment is being
audited and
optimized.
“The responsibility for the
systematic management
of marketing resources
and processes to achieve
measurable gains in return
on marketing investment
and increased marketing
efficiency, while
maintaining quality and
increasing the value of the
corporation.”
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A Marketing Dashboard – Key to Accountability
Has all the necessary dials and gauges to tell you where you are, where you‟re going and at what speed –along with indicator lights that illuminate at the first sign of a problem
Enables organizations to measure, monitor and manage business activity using both financial and non-financial measures
Provides an overview marketing goals and objectives, and real-time insight on progress toward each objective
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What is a Dashboard?
A „multidimensional‟ view
of data and their
interrelationships.
Executive dashboards are
essentially designed to
provide summary views of
data and alert users to
values that are
significantly above or
below expectations
demonstrating the
strategic value of
marketing.
“A dashboard is a visual
display of the most
important information
needed to achieve one or
more objectives;
consolidated and arranged
on a single screen so the
information can be
monitored at a glance.”Stephen Few, Information Dashboard Design (2006)
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The Marketing Dashboard – The Ultimate Performance Management Tool
Metrics and KPIs (key
performance indictors) are
the building blocks for
creating a dashboard
Dashboards and
Scorecards
Multilayered performance management systems that enable organizations to
measure, monitor and manage business activity using both financial and non-financial measures
Categories for the Marketing
Executive Dashboard
Customer Acquisition and Retention
Customer Advocacy and Value (LTV, Margin, Loyalty, Share of Wallet)
Customer Equity
Product Innovation and Adoption
Competitive Positioning/Market Value Index (share of
preference, rate of growth)
Remember the Money
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Use the Dashboard To
Show how marketing is moving
the needle
Assess what is and isn‟t
working
Foster decision making –
is actionable
Provide a unified view into
marketing‟s value
Enable better alignment
between marketing and the
business
Translate complex measures
into a meaningful and
coherent set of information
Dashboards only
work if they are tied
to a structured action
process
It must do more than
just measure, needs
to be used to foster
decision making
Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2010 VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. 26
Metrics are the Foundation
Choose Metrics that Matter –need to be relevant
Start with the organization‟s
core business outcomes
Clarify how marketing objectives and initiative contribute to the outcomes
Assess your data
Select metrics that measure the contribution –effectiveness, efficiency,
value
Every metric on your dashboard should clearly connect marketing to the outcomes
Remember find, keep and grow
New customers – number, rate,
etc.
Executive Level Metric –
New Customer Acquisition
Rates and Product
Adoption Rate
Operational Level Metric –
Number and cost of qualified leads and Trials
Functional Level Metric –
Program performance
Top Line Revenue as an
outcome
Executive Level Metric -
Operation Metric – Pipeline
Contribution
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Dashboards Take Analytics
Analytics
The Ability to Drive Actionable Insights from Data
Critical to facilitating better and faster fact-based decisions
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Analytics Take Data
Performance Management Organizations:
Embrace data - See Data as the foundation for success
Get the best data possible and use it in a pre-defined, unbiased way
Install and use a data management system
Create and maintain a data inventory
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Dashboard Data Chain
Activity results vs targets & costs
Program results vs targets and cost
Objective results
Outcome results& value
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The Metrics Framework Helps Develop the Dashboard:
Executive level Strategic level – monitors
and measures performance against business outcomes and marketing objectives
Operational levelMarketing management – tracks performance of
core marketing strategies and processes
Tactical levelFunctions and individuals – analyzes performance at project or activity level as they relate to the first two
Marketing Dashboard Layers
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The Making of a Dashboard
Outcome,
Objective,
Metrics and
PerformanceTarget
Development
Data
Collection
and
Assessment
Alpha Dashboard
Review and Revise
BetaDashboard
Review AndRevise
PilotDashboard
Review and
Revise
ProductionDashboard
The development of a marketing executivedashboard entails these steps.
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Dashboard Questions To Address
Will it be corporate-wide or unit specific?
Who will be responsible for inputting data and keeping the Marketing Dashboard current?
Where will this data be housed?
How will it be accessed? Which key stakeholders in the organization need
to be involved? Will the Marketing Dashboard be introduced in
selected geographies or rolled-out globally? Will it involve internal metrics, external metrics, or
both?
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Why Isn’t This a Dashboard?
Can you tell how marketing is contributing the business?
Can you assess what is and isn‟t working?
Can you make a decision?
Do you know where the gaps are and what is causing them?
Design and develop new merged intranet site
Implement guidelines for continuous improvement of marketing and sales intranet site
Program #4
Automated Online Direct Marketing
Program #5 - Create four regional Marketing Programs
Set up Profoma (Access to online direct marketing
materials - customized, printed, shipped & tracked)
Link to Virtual Warehouse
Define Markets requiring emphasis, implement direct
marketing program
Evaluate Mid-west BAXSaver opportunity
Enhance access and ease of use
Maintainance and create new materials needed
Corpoarate Capabilities Presentation
Program #6
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Make the Dashboard Actionable
The usefulness of a dashboard is in the
precipitation of action to correct performance variances therefore it is
essential to know what conditions trigger
action
Set thresholds for alarms/alerts
Look at trends as well as current data
Pre-define response actions for yellow and
reds alerts
Establish standardized rules for reporting
variances and corrective actionImprove Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2010 VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. 35
Business Outcome Level Example – Two Outcomes
Market Share
Category Ownership
0
5
10
15
20
25
30
35
Time
Ma
rke
t S
ha
re
Market Share Performance to Target
Market Share Target
Enterprise actual
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
FY08 1Q09 2Q09 3Q09 4Q09
Re
ve
nu
e
Time
Enterprise Performance to Actual
# 1 Player Target
Enterprise Actual
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Marketing Objective Level Example –Two Objectives – Margin and Marketing Contributed Deals
MarketingContribution
01002003004005006007008009001000
0200400600800
100012001400160018002000
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Co
st
Leads
Time
Market Share Outcome Lead and Cost Performance
Qualified lead target
Qualified lead actual
Margin – Number of Opps and Cost
0
200
400
600
800
1000
1200
1400
1600
1800
2000
0
20
40
60
80
100
120
140
160
180
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Leads
De
als
Time
Market Share Lead and Deal Performance
Marketing Deals Target
Marketing Deals Actual
Qualified lead target
Qualified lead actual
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Campaign Level Example – Margin and Opps
Market Share Initiative: Campaign XYZ Lead to Cost Performance
02468
10121416
Qualif
ied
lead t
arg
et
Qualif
ied
lead a
ctu
al
cost/
qualif
ied
lead t
arg
et
cost/
qualif
ed
lead a
ctu
al
Leads
0
200
400
600
800
1000
1200
Dolla
rs Leads
Cost
0
0.5
1
1.5
2
2.5
3
3.5
0
2
4
6
8
10
12
14
16
Marketing
Deals Target
Marketing
Deals Actual
Qualified lead
target
Qualified lead
actual
De
als
Lead
XYZ Campaign Lead to Deal Performance
3Q09
4Q09
Actual to targetresults and costssignificantly off –
what would you do?
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Make the Data More Meaningful
Marketing programs are investments that are intended to
deliver specified benefits –
dashboard data needs to
indicate when one or more benefits are at risk
Define the alerts
green means something is
within target performance,
yellow means something is
outside of target
performance (on functional
level could indicate a schedule or cost overrun),
red indicates a serious
variance or deficiency that signifies potential failure
What needs alerts?
Whether actual performance is not
keeping up with planned performance
Whether actual costs are out of line with the expected costs AND
outside ROI parameters
An increase in yellow alerts
usually indicates worsening conditions
An increase in red alerts usually indicate corrective action is not working
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Dashboard Elements
Alert Icons – indicates the condition of the KPI
Trend Icons – represents how a KPI is behaving over time
Progress Bars to indicate relative progress toward a positive quantity in a real number
Gauges – uses to assess both positive and negative values along a relative scale
Bar Charts for categorical analysis
Line Charts to show progress of one or more measure over time
Tables and Lists – for non-numeric data or data that has relationships not easy to visualize – use for data that doesn‟t lend itself to easy numeric analysis
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Using Alerts
Length of engagements
Expanding, cost to serve
increasing
1Q09 2Q09 3Q09 4Q09 1Q10
RFID 40 35 50
Govt & PubSafety 195 335 515
Route 15 50 105
Healthcare 245 350 400
Retail 500 400 550
00.20.40.60.8
11.21.41.61.8
Reven
ue b
y S
eg
men
t P
art
ner
Th
ou
sa
nd
s
Overall partner revenue is up only slightly
over same period prior year, however the
number of partners is down, from 257 to 238.
2 2 3 21
44
40
11 2
0
1 02
0
0 1
2
1
02
4
3
4
3
4
0
5
10
15
20
25
Q1 Q2 Q3 Q4
Mfg/Whs Retail Healthcare Route PubSafety RFID Other
Marketing lead gen focus
on RFID is paying off.
0
5
10
15
20
25
Ne
w P
rod
uc
t R
ev
en
ue (
%)
Launches producing better
product adoption rate
0
200
400
600
800
1000
1200
1400
1600
closed
open
total
Service Engagements
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Things to Remember
Develop a Dashboard that:
Shows how marketing is moving the needle
Helps assess what is and isn’t working
Fosters decision making – is actionable
Provides a unified view into marketing’s value
Enables better alignment between marketing and the business
Translates complex measures into a meaningful and coherent set of information
Improve Your Probability for Success ™ | www.visionedgemarketing.com | ©1999-2010 VisionEdge Marketing. All rights reserved. Not for reproduction or redistribution without written permission. 42
Wrap Up, Thank You and Questions
Focus on accountability is
not going away
Performance management takes new skills and data
Marketing Ops is a pivotal
role for the performance-driven marketing
organization
Dashboards fall within the domain of marketing ops
and are the ultimate performance management
tool