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Despite steady advances in marketing execution and measurement technologies, B2B marketing leaders still struggle to measure marketing’s impact on the business. In this webinar, SiriusDecisions Research Director Ross Graber & Allocadia CMO James Thomas look at the current state of B2B marketing measurement and share guidance on how successful organizations align their business objectives with measurable marketing impact. Join us to hear SiriusDecisions' research-based recommendations for how to: - Establish a meaningful view of marketing’s contribution to revenue - Develop measurement priorities, and align those priorities with marketing investments - Structure a system of measurement that effectively demonstrates results.
Citation preview
The ROI Dilemma: Aligning Marketing Priorities with Measurable Results
Featured Analyst:
The ROI
Dilemma
Ross GraberServices Director,
Marketing Operations Strategies
@RossGraber
James ThomasCMO
@jthomas_44
Presenters
Agenda
Housekeeping • Questions? Use the Chat Panel
or on Twitter
• Technical Difficulties? Contact [email protected]
• The ROI Dilemma: marketing measurement challenges and trends
• How to leverage effective planning processes to drive effective measurement using the SiriusDecisions Campaign Framework
• How to deploy strategic planning processes with investments, measurement and performance using Allocadia
#SDWebinar
Ross GraberService Director, Marketing Operations Strategies @RossGraber #sdwebinar
Linking goals and performance measurement
The Marketing ROI Dilemma
© 2014 SiriusDecisions. All Rights Reserved 6
What We’ll Cover Today
• Key issues
• Marketers struggle to develop measurement that adequately captures marketing’s impact – especially when demand creation isn’t the only goal
• Poor definition of what will be measured and how success will be judged leads to inefficient use of marketing’s resources
• Technology-fueled attribution models may offer easy answers, but they are leading b-to-b marketers astray
• What you will walk away with
• Key considerations for building a measurement strategy
• An understanding of attribution modeling options and their implications
• A planning framework for delivering more strategic measurement
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 7
Marketing Leaders: Still Struggling With Measurement
Working Not - Working
• Better visibility of tactic performance through improved systems
• Marketing sourced revenue is clearer
• Demand waterfall helps identify required volumes and problem areas
• No agreement on a definitive ROI metric
• Poor connections between activities and business impact
• Evaluation of non-demand creating activities
Marketing MeasurementA strategic view
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 9
Expectations For Marketing’s Contribution
Large:Strategic/Enterprise
Named/Territor
y
Small/Midsizeand Non-Named
Account Type Pipeline KPI Averages
Typical Program Balance
Demand >40%Enablement 20%-30%Reputation <20%
Influenced: 60%-75%Sourced: 15%-25%
Enablement >40%Demand 30%-40%Reputation <20%
Influenced: >75%Sourced: <10%
Reputation >40%Demand 30%-40%Enablement <15%
Influenced: 50%-60%Sourced: 25%-45%
SiriusPerspective: Sourcing pipeline is not always the primary objective of marketing; develop measurements that reflect marketing’s priorities.
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 10
Listening
Delivery and Education
Coaching
Comm
unicatio
n
Goal Setting
• Project Initiation• Stakeholder Definition• Reporting Goal Definition• Business Goal Validation
Execution
• Data Gathering• Report Building• Documentation and
Approvals• Launch /Launch Planning
Evolution
• Adoption and Use
• Refinement
Marketing Measurement Is a ProcessSiriusPerspective: A deliberate process drives development of useful, well understood, accepted systems of measurement – success isn’t achieved through happenstance.
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 11
The first step toward aligned measurement requires distinguishingbetween what is done and the results produced.
Metric Class: Getting Specific
Counts of actions taken
• Email sent• Calls made• Requirements
writtenActivity
Direct results of actions
• Inquiries• Proposals• Demo requests
Output
Effects against business goals
• Revenue• Market share• Profit
Impact
Class Measure Description
SiriusPerspective:
Tactic Attribution“I want to know how much revenue each marketing tactic creates”
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 13
Popular wisdom and vendor opportunism is pushing b-to-b marketers toward tactic attribution models.
Attribution Models – The Basics
• Assess the value of individual marketing tactics through association with the revenue they yield
• Stake a claim to the value of won opportunities
• Factor revenue against the cost of a tactic to come up with a tactic ROI
How They Work
Tactic cost
Wonopportunityvalue
ROI
$25,000
$100,000
4X
SiriusPerspective:
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 14
Despite their variations, attribution models don’t deliver marketers a trustworthy view of the value created by different tactics.
Marketing Attribution Models – Tread Carefully!
Single Touch
Distributed
Variations Considerations
• First touch• Last touch• Select touch
• Even• Assumed• Statistical
• Simple to implement• Overlooks multi-touch, multi-
player value creation• Touch choice creates bias
• Factors in multi-touch complexity
• Rules often arbitrary and don’t reflect buying realities
• Must be predicated upon deep buying-cycle analysis
Att
rib
uti
on
M
od
els
SiriusPerspective:
There’s a Better Way
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 16
Effective Planning Drives Effective Measurement
Campaign Measurement Framework
Shows near-term outputs of tactic performance
Advertising SEM PR SocialTactic Types
Addresses campaign-wide achievement against top-level goals
Campaign
Summary
Measure against defined objectives connected to success
ReputationDemand Creation
Sales Enablemen
t
Market Intelligenc
e
Programs
Tactic Performance
Ad Impressions Clicks Inquiries Cost
A 1,000 20 4 $500
B 3,000 10 8 $5,000
C 2,000 200 2 $1,000
Tactic Shares Clicks Subscribes Cost
A 12 20 4 $500
B 20 10 8 $50
C 5 200 2 $0
SiriusPerspective: Organized by tactic type, program and campaign, view combinationsof actions relative to campaign objectives.
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 17
Revenue Goal $$$Campaign Goal 1: X% Market ShareCampaign Goal 2: +Y% RetentionCampaign Goal 3: >Z:1 Revenue : Invest.
Campaign Measurement Framework
Campaign Measurement Framework
Campaign
ReputationDemand Creation
Sales Enablemen
t
Market Intelligenc
e
Webinars SocialContent
Syndication
Events
Summary
Tactic Types
Programs
Tactic Performance
Webinar Reg Attend MQL Cost
A 250 120 20 $5,000
B 500 100 8 $8,000
C 125 90 12 $3,000
Event Attend Inq Briefings Cost
A 50 12 0 $8,000
B 300 25 3 $10,000
C 100 20 6 $5,000
Demand Goal 1: +Q% PipelineDemand Goal 2: +R% VelocityDemand Goal 3: +S% Influence
SiriusPerspective: Organized by tactic type, program and campaign, view combinationsof actions relative to campaign objectives.
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 18
• Planning takes a disciplined approach supported by process, strategy, skills, tools and leadership
• Developing the charterfor marketing is difficult work
• Visibility to organizeperformance by expectations is oftenlacking
But Why Are Marketing Organizations Still Struggling?To get specific about planning and expectations, b-to-b organizations
must employ disciplined process, informed by data and supported by leadership.
Focus on Planning
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 20
SiriusPerspective: After specifying strategies for generating revenue, b-to-b organizations can align their marketing actions accordingly.
Breaking Down the Objectives
New Logo Retention
Upsell Cross-Sell
Sales in new accounts
Ensure existing customers retain existing commitments
Expand into new buying centers within existing logos
Expand in current buying centers within existing logos
© 2014 SiriusDecisions. All Rights Reserved 21
Campaign Objectives Worksheet: Summary Level
Campaign-wideSummaryObjectives
How campaign objectives distribute across objective areas (relative priorities)Campaign Priority Stated Objectives
New Logo:• Logo count• % Logo gain• Market share• New logo
revenue
Retention:• % revenue
retained• % accounts
retained• Cost per
retained
Cross-sell:• New buying
center $$$• Account
expansion• Wallet share
Upsell:• Upsell revenue• % existing
product growth
• Wallet share
Sample Metrics
Revenue Objective: $______ or +___ %
New logo: ___ % ___% _________________
Retention: ___ % ___% _________________
Cross-sell: ___ % ___% _________________
Upsell: ___ % ___% _________________
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 22
Program Objectives Worksheet – Program Family
Reputation
Demand Creation
Sales Enablement
• Deals stall at late stages• Field sales reluctant to interact with persona A• Frequently outmaneuvered by competitor Q
• Inquiry counts are low• Qualifying a lead takes too long and costs too much• Content attracts users, not decisionmakers
• Small % of audience is aware of company• Those who know us know us for X, not Y• Competitor Z dominates the conversation
High
HighLow
High
Medium
LowHigh
Medium
Medium
SiriusPerspective: Organized by tactic type, program and campaign, view combinationsof actions relative to campaign objectives. Program Family List top three opportunities/obstacles to campaign success
per program family. Program tactics are designed to address these.
O / O
SiriusPerspective:
© 2014 SiriusDecisions. All Rights Reserved 23
SiriusPerspective: Start with an allocation approach to budgeting, and fill in the details when quarterly budgets are understood.
Align Resources and Priorities
And Then to Quarters
Allocated to Program Families
Campaign Budget Campaign
ReputationDemand Creation
Q2 Q3 Q4
Sales Enablement
Market Intelligence
Q1
And Then Bottom-up
to Execution TypesGlobal
DevelopmentGlobal
ExecutionRegional Execution
Regional Development
© 2014 SiriusDecisions. All Rights Reserved 24
Recommendations
• Effective performance measurement starts with defining what the business expects from marketing.
• There isn’t one ROI metric, but instead a custom collection of measures that demonstrate marketing’s performance.
• Create this view performance from the top down, instead of trying to construct it by piecing together tactics outside of objectives.
• Link the organization’s goals with the actions marketing will take to produce those outcomes.
• Plan purposefully against marketing’s objectives and assign marketing’s resources to prioritized performance areas.
Thank You!
© 2014 SiriusDecisions. All Rights Reserved 26
James ThomasCMO of Allocadia@jthomas_44 | @allocadia
#SDWebinar
© 2014 SiriusDecisions. All Rights Reserved 27
How to Align Marketing Priorities with Performance Results using Allocadia
Create alignment and gain full visibility across your marketing organization
Your strategic plans, investments and budgets, all in one place.
© 2014 SiriusDecisions. All Rights Reserved 32
Leadership View: Marketing Investment Target Performance
Gain insight to see how marketing is investing against business goals
© 2014 SiriusDecisions. All Rights Reserved 33
Operations View: Strategic Investment Plan
Understand your global marketing mix and investment strategy
© 2014 SiriusDecisions. All Rights Reserved 34
Tracking Investment Performance: Plan vs. Actuals
Know how your spending against plan with real-time insights
© 2014 SiriusDecisions. All Rights Reserved 35
Marketing Performance: Marketing Returns
Strategize & Plan: Effective Planning to Marketing Measurement
© 2014 SiriusDecisions. All Rights Reserved 36
Marketing Performance: Marketing Returns
Share how marketing is contributing to the business
Key Takeaways
• A better way of measurement starts with better planning
• Drive towards a sense of impact. Set marketing’s goal and develop expectations for performance
• Define how marketing will contribute and what they will drive for the business
Questions
Please your questions in the Chat panel.
To see a demo of Allocadia, go to:learn.allocadia.com/demo
Thank you. • Receive a copy of this presentation
• Get a personalized demo of Allocadia
learn.allocadia.com/demo
James ThomasCMO | Allocadia
@Jthomas_44
@allocadia
Ross GraberServices Director, Marketing
Operations Strategies
@RossGraber@siriusdecisions