Metrics and Analytics Clinic - Marketo APAC

© 2014 Marketo, Inc. Marketo Proprietary and Confidential

Metrics and Analytics Workshop

How to Harness the Power of Data to Maximise Marketing ROI

Page 2© 2014 Marketo, Inc. @jonmiller




Topics

• Building Marketing Credibility

• The Right Metrics

• Revenue Metrics• Marketing Program

Performance


Quick Housekeeping

• Chat box is available if you have any questions

• There will be time for a Q&A at the end • We will be recording the webinar for

future viewing• All attendees will receive a copy of the

slides/recording • Twitter hashtag: #Marketo


12%

20%

15%

9%

44%

Improve profits by more than 20%Improve profits by 10% to 20%Improve profits up to 10%No major change in profits generatedDon't Know

What Profits Can Be Generated With 10% More Budget?

#1 Answer:Don’t Know

Source: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study


Where Metrics Go Wrong

Vanity MetricsSound good and impress people, but don’t measure impact on revenue or profitability


Where Metrics Go Wrong

Activity MetricsMeasure what you do instead of what results and impact you have


When Metrics Take Away Credibility

Cost MetricsFrame marketing in terms of cost and spending instead of results and outcomes


Metrics That Give Marketing Power“Speak the Language of Business”

Aggregate impact on company revenue; pipeline performance; predictive forecasts

Revenue Cycle and Forecasts


Metrics That Give Marketing Power“Speak the Language of Business”

Incremental revenue contribution and ROI of individual marketing programs

Program Performance


Revenue Cycle Metrics


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Marketo’s Revenue Cycle

TOFU MOFU

Opportunity CustomerLead

Sale

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ad

Nurturing Database

BOFU


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Sale

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Nurturing Database

Exposed to us via content, brand, or word of mouth


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Sale

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Nurturing Database

Feels a relationship and trust with us


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Sale

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Nurturing Database

Names are just names.


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Sale

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Nurturing Database

Meaningful interaction with us


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Sale

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Nurturing Database

Qualified potential customer Nurture until sales ready


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Nurturing Database

Marketing qualified lead (score > 100) – Sales Development Rep (SDR) reach-out


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Nurturing Database

Qualified as sales-ready by Sales Development Rep (SDR)


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Nurturing Database

Accepted and actively worked by sales:marketing quota attainment


Revenue Cycle Modeler

Screenshot: Marketo Revenue Cycle Analytics


Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.

Key topic areas:• Balance (Reach)• Flow• Conversion• Velocity Trends over time



Use Metrics to Set & Justify Budgets

New Targets

60,000

InventoryOf ActiveTargets

131,000

New MQLsScore>100

23,00015.3%

Inventory of Active MQLs

10.5% 20,000

New Opps*

1,000 6 Month Created Opp Inv.

2,000

270

*Opps is bigger than SQLs because includes outbound and partner referrals

SDR capacity driven

Inb

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/ P

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120,000(900K DB Total)

New Names

New SQLs

922

2.4%

1.9%

75%

Win

s35% win


Introducing Marketing Forecasts

• Where the CSO lacks “bottom-up” visibility, marketing forecasts can fill the void

• Marketing has long-term view and visibility into the early stages of the revenue cycle

Traditional Marketing Forecast

The market will grow by an estimated 4.2% overall and by 5.1% in the Western region.

Highly Accountable Marketing Forecast

Marketing will generate an incremental 30 new deals worth $4.0 million of bookings that are not currently in the sales forecast.


Marketing Forecasts

Get The “Definitive Guide to Marketing Metrics & ROI”http://marketo.com/DG2MM

http://bit.ly/DG2MM


Program Performance



Accurately Tracking “Investment” vs Budget


Why Measuring Return is Hard

• Multiple touches. Seven touches needed to convert a cold lead into a sale

• Multiple influencers. Typical buying committee has 5-21 people


Source: 2013 Lenskold Group 2013 Lead Generation Marketing Effectiveness Study

Ways that Companies Measure Program ROI


First Touch


Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.





Inbound creates the best leads by far: high conversion, high velocity



But we also use a Portfolio of programs



Sponsored Email builds the database, but low conversion



Webinar, tradeshow, PPC, and virtual tradeshow are top paid TOFU



Paid Social & Display Ad drive brand and amplify inbound as well



Average days to Opportunity: 327

days


Multi-Touch


Track All Touches Across People



Track All Touches Across People



Example: Multi-Touch Attribution

A deal worth $100,000 recently closed. Three people were involved in the deal: • Person A attended Seminar A and Trade Show B• Person B attended Trade Show B• Person C was sent Direct Mail C

$100,000 Revenue

$25,000 $25,000 $25,000 $25,000

Seminar A$25,000

Tradeshow B$50,000

Direct Mail C$25,000


Screenshot: Marketo Revenue Cycle Analytics (actual data)


Source: Marketo Revenue Cycle Analytics, Apr 2014* Percentage of all programs in channel that achieve MT Ratio > 5



Inbound + Nurture = 58% of (MT) PipelinePaid Programs = 42% of (MT) Pipeline



(MT) Ratio = Pipeline / Investment

>10 is Great and <5 is FailSponsored Email = 12.8, Tradeshow = 10.6, PPC = 13.0, Webinars = 25.4, Field Events =

6.6, Content Syndication 7.7



% Programs with MT Ratio > 5e.g. Tradeshow has good average

but 49% programs “fail”


Test and Control


Example: Test and Control

Source: Lenskold Group


Planning for Marketing MeasurementMeasure ROI to find not just what

works, but what works better. Establish Goals

and ROI Estimates Up-Front

Design Programs to Be Measurable

Focus on the Decisions that Improve ROI


Tweetable Takeaways & Q&A

1. Reporting is less important than DECISIONS that improve ROI

2. Focus on financial metrics that matter to the CFO (profit, cash, revenue)

3. Avoid cost and spend metrics – focus on investment and return

4. Multi-touch attribution gives more insight into the full funnel

5. Almost anything can be measured with testing, but you can’t test everything

6. A trusted marketing forecast is the single most important step to make marketing a revenue driver, not a cost center

@jonmiller