1 2 3 4 5 6 7 What You Need to Know About Better Dashboards Four Realties That Change Marketing Reporting Two Rules of Better Marketing Measurement Where to Start: KPIs, Metrics and Flow What Companies are Measuring Now Where Measurement is Going Next Reality 1: Marketing Has More Roles Than Ever SiriusPerspective: Waterfall-long alignment is driven by planning and execution tied to five critical task families. 1 SEED The use of traditional and social media to set the stage for demand to be created. Inquiries 3 Marketing Qualified Leads (MQLs) 2 CREATE The generation of “original” demand, with a focus on quality vs. quantity. 4 ACCELERATE Efforts geared to help sales move deals more quickly through the pipeline. ENABLE Helping reps move marketing-created demand, as well as to source their own demand. Sales Accepted Leads Sales Qualified Leads (SQLs) 5 NURTURE Care and feeding of prospects that have fallen out of the waterfall. Closed/Won Business Source: SiriusDecisions 9 Reality 2: Different Sales Models, Different Marketing SiriusPerspective: What marketing needs to deliver changes based on sales tier, and so do the KPIs and metrics to track results. ENABLE ACCELERATE SEED CREATE ENABLE NURTURE SEED TIER ONE TIER TWO Strategic Enterprise/Territory ACCELERATE CREATE SEED ENABLE TIER THREE Small/Medium Business NURTURE Source: SiriusDecisions 10 Reality 3: Most Inquiries Arrive Via Inbound Channels SiriusPerspective: The reality is that prospects find you when they’re ready; inbound marketing needs a bigger slice of most plans 100% 90% 80% 70% 55% 58% 71% 60% Web 50% Direct Mail 40% 19% 30% Email Events 21% 14% 20% 11% 10% 15% 12% 6% 9% 2009 2010 2015 9% 0% Source: SiriusDecisions 11 Reality 4: Tactics Are Valued Differently By Phase SiriusPerspective: It has never been more important to understand how buyers buy and what they prefer to drive marketing focus Buyer-Preferred Tactics by Buying Phase Source: SiriusDecisions 12 Result: BtoB Reporting Must Evolve SiriusPerspective: Reporting needs an overhaul to support the expanded role and changing tactic mix for b-to-b marketers Buyer Control and Preference for Multiple Tactics More Roles for Marketing Plan, Execute and Measure Differently Rule #1: Never Confuse Activity with Results SiriusPerspective: Marketing reports must answer the question “what do they do for us?” in terms sales and management understand What Marketing Reports: “We held 6 webcasts, 2 tradeshows, did 5 press releases and sent 10 What Management Wonders: email campaigns last quarter.” “What revenue did that bring in?” Source: SiriusDecisions 14 Don’t Link Individual Tactics to Closed Deals SiriusPerspective: Don’t attribute wins to a single touch when it takes on average three to six touches to qualify a lead, and more to close. Single Tactic Attribution Multi-Touch Attribution First/Last Touch MQL Tele Web/ Inbound Other Outbound MQL Close Source: SiriusDecisions 15 Rule #2: Measure Numbers that Matter SiriusPerspective: Understand the difference between KPIs and metrics and what they tell you about marketing impact Metric: A measurement system that quantifies a trend. Metrics are used to diagnose causes, explain results, and project future events and likely outcomes. KPI: Key performance indicators are measurements that indicate the health of the business and are centered around aggregate growth, costs, market share and profit. Source: SiriusDecisions Inc 16 Choose the right measurements for your business SiriusPerspective: Take on the marketing measurements that will have an impact and are achievable. Measurement Selection Criteria Data Source What business decisions will you make with the measurement? Can you identify the data source? What is the quality of the data? Who is the audience? Data Quality Business Decision Ownership Questions to Answer Audience Who will “own” the data? Source: SiriusDecisions 17 Where to Start: Four KPIs Summarize Marketing Impact Average* SiriusPerspective: Net out marketing’s effective To reflect changes incontribution marketing’sand charter, its use of budget with four benchmarkable measurment will take a broader lookKPIs. at investment and results. Marketing Sourced Pipeline Marketing Influenced Pipeline Investment-toPipeline Investment-toRevenue % of sales pipeline uniquely created by marketing % of sales pipeline touched by marketing Average cost of demand creation of the sales pipeline Average revenue generated from $1 invested in demand creation 1% to 4% $5 to $20+ 10% to 50% 30% to 82% *Cross-industry averages for b-to-b companies Source: SiriusDecisions 18 Where to Start: Six Metrics Diagnose Opportunity SiriusPerspective: Expand on KPIs withcontribution six metrics and that effective break Net out Marketing’s use marketing demand ceration contribution of buget with four benchmarkable KPIs. into component parts. Inquiries Raw response or hand raiser 25%+ 2-5% Average* Database % database with bad/ incomplete records Marketing Qualified Leads (MQLs) Lead ready for receiving function to work Lead accepted by receiving function Lead that is opportunity in pipeline 4% to 8% 45% to 75% 50% to 60% Sales Accepted Leads (SALs) Sales Qualified Leads (SQLs) SQL-toClose Leads that have closed 20% to 30% *Cross-industry averages for b-to-b companies Source: SiriusDecisions 19 What B-to-B Companies Are Measuring Now SiriusPerspective: Though many metrics are counted, those rated most valuable are related to waterfall results. Overall Status • ROI • Market share • Customer sat/loyalty • Views by segment and geo • Marketing spend vs. budget Demand Creation • Marketing sourced demand • Marketing influence • Waterfall metrics • Buying cycle length • Cost per lead Reputation • Web analytics • Analyst positioning • PR/AR activity • Event activity Marketing Operations • Database growth • Shared services utilization • Stakeholder satisfaction Source: SiriusDecisions 20 Effective Dashboard Structure: Information Flow SiriusPerspective: The best reports and dashboards select the right measures by audience, then show and tell the story clearly. Executive Summary Reputation KPIs and Metrics (Seed) Demand Creation KPIs and Metrics (Create and Nurture) Sales Enablement KPIs and Metrics (Enable) Marketing Operations KPIs and Metrics (Operate) Source: SiriusDecisions 21 Where We’re Headed: Marketing Influence and ROI SiriusPerspective: To reflect changes in marketing’s charter, its measurement will take a broader look at investment and results. Source: SiriusDecisions 22 Marketing Influence: What to Track SiriusPerspective: Measuring overall marketing influence relies on associating tactics with contacts and opportunities Response Participation Response Database Growth Buying Cycle Presence % of Pipeline Touched Marketing Tactic Cadence for closed deals # of touches Results *for marketing touched deals Sales Cycle Length Sales Phase Duration Revenue Cost per Lead ASP/Deal Size Source: SiriusDecisions 23 Summary Today Review metrics and KPIs to be sure they’re the right ones Make sure dashboard is logically organized Set goals for updated measurement In Three Months Map marketing tactics to the buyer’s journey, including the parts where sales is involved Monitor impact In Twelve Months Use full year of new metrics to benchmark progress Revisit allocation of marketing focus to reflect sources of impact Source: SiriusDecisions 24 Contact Us Megan Heuer, Service Director Marketing Operations Strategies mheuer@siriusdecisions.com (203) 665-4022 Follow Megan and SiriusDecisions: http://twitter.com/megheuer http://twitter.com/siriusdecisions © 2010 Marketo, Inc. 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