Aquent CRE8 Measurement M Becker

Measuring Marketing Results

Mayer G. Becker
National Practice Director
MarketSphere Consulting LLC
mayer.becker@marketsphere.com
(312) 357-4405

CRE8 Conference 2008 CRE8Summit.com | Presented by AGI agitraining.com

Welcome!

Mayer G. Becker
25-year career in marketing
Director of Marketing – American Bar Association
Director US Marketing Communications, Computer Associates Inc.
Vice President, Hill & Knowlton, Inc.
Director, Corporate Marketing - Tribune Company
(In-house CRM & agency)
VP Marketing – Telenisus Corp.
Director of Marketing Communications (Global), United Airlines Inc.
National Practice Director, Enterprise Marketing Management,
MarketSphere Consulting LLC
Chicago AMA Chapter Member, Voting Member, DMA

CRE8 Conference 2008 | CRE8Summit.com
January 24, 2008 © 2007 MarketSphere Consulting LLC 2

MarketSphere EMM Practice

The MarketSphere Enterprise Marketing
Management (EMM) Practice addresses the
needs of the Chief Marketing Officer (CMO) and
the marketing organization.

Our unique transformational approach combines
process and organizational change with
adoption of new marketing automation
technologies that drive customer, financial and
operational insights, more effective marketing
programs and a higher return on Marketing
Investment (ROMI).

MarketSphere services include vision and
roadmap development together with software
selection, marketing process improvement,
software implementation and product training for
the Aprimo® and Unica® EMM product suites.


Agenda

Taking your pulse – what’s important to you?
Framing the challenge for marketing
Why talk measurement?
3 Dimensions of Marketing Measurement
An introduction to Marketing Operations
Enterprise Marketing Management
Resources to learn more
Q&A


A vignette from the past
Mutli-national software company with 375 products/16 product lines
Problem: Marketing materials needed to support field sales activities were almost
never on-time, direct mail was dropping late, there was “chaos” and not order in the
MarCom area as priorities changed hourly. Late fees were the routine and staff was
stressed.

Challenge: Establish a process that ensured all marketing materials are created and
distributed on time to meet marketing objectives.

Solution
Established standards and key milestones for each type of activity
Established a quarterly planning process – forward looking 4 quarters (2/2)
Built a home-grown Marketing Ops application that organized projects and
provided reports and status to all marketing stakeholders (published weekly on
Monday)
Enlisted EVP Marketing to support change


Problem-solving results
Result: 90-day changeover to a full plan, delivery of 89% of all projects on time
within 12-months (versus 50%), reduced rush charges $900K, earned new
revenue of $10MM from direct mail.

Help
Improve Apply
People
Process Technology
Change

4 Qtr Planning Management tool Weekly Report &
Horizon to track projects Red Flag Status
Integrated Reports based on EVP Support
Calendar Milestones
Deliver as
Standards Promised


Framing the challenge for marketing
Internal issues External issues
CEO urges marketing to lead • Consumers have more choice
innovation and growth • Faster time-to-market
CFO wants visibility into • 24x7 markets
marketing performance; more
• Traditional competitors have
accountability; Sarbanes-Oxley
become more effective marketers
Disconnect between the
• New competitors from internet
languages of finance and
sites
marketing
• Manage and integrate proliferating
New Chief Marketing Officer
communication channels
(CMO) every 24 months.
• Agencies as project resources
New CEO, CFO
versus long-term AOR
Flat or reduced budgets and
• Agency staff turnover
headcount in marketing (and
• Short-term, quarterly financial
elsewhere)
reporting for public companies
Staff turnover


Industry snapshot

The Marketing function is the last major business function to be addressed by
technology, beginning with CRM in the late 1990’s
Since 2003 global companies have been re-defining their marketing operations:
Identify more accurately and conclusively the return on marketing investment
at all levels of detail, to demonstrate value
Gather and analyze significant amounts of customer data, to enable greater
insight into customers
Gather and analyze operational and financial data, to improve the
effectiveness of programs while driving down the cost of marketing
Preserve and protect marketing intellectual property, to insure compliance,
facilitate reusability and preserve corporate memory
The result is the adoption of marketing governance (investment portfolio
management), creation of a PMO and implementation of Marketing Resources
Management software within the marketing department.


Forrester Research

“Marketers should buck this trend [CMO turnover] by establishing a
contract with the CEO, in writing, that outlines success metrics
and targets for the department that are clearly aligned with
corporate business goals. Marketers should reach out and partner
with finance to construct the contract and enlist IT to build
dashboards for tracking progress towards goals. By building
executive credibility, marketing stands to gain additional budget
dollars and executive support. A financial services CMO tells us:
quot;Our tests proved that budget was sustained and increased by
adding transparency and accurate metrics.quot;

Peter Kim, Forrester Research, March 9, 2007


Ancient adage

“If it can be measured, it can be managed.
Quote of Unknown Origin, 20th Century?


3 dimensions of marketing measurement

Measures customer performance against
Customer established targets

Measures financial performance against
Financial established targets

Measures operational performance
Operational against established targets


Measures customer performance against
established targets:
• Customer lifetime value
Customer
• Intent to re-purchase
• Customer satisfaction quotient
• Average invoice or revenue per sales
Financial ticket
• Number of visits or purchases/time
period
• Churn (especially trend)
Operational • Net new customers
• Cost per acquisition or retained customer
• Brand recognition



Measures financial performance against
established targets:
Customer
• Financial measures; “budget to actual”
• Brand asset value
• Customer financial measures; lifetime
Financial value, cost of acquisition, cost of retention
• Return on Marketing Investment (ROMI)
• Cost per lead, cost per sale
• Gross and net profit margins
Operational



Measures operational performance
against established targets:
Customer
• Number of projects
• Projects on time/within X days
• Staff hours utilized; agency hours
Financial • Ratio of staff to freelance hours
• Agency satisfaction scores
• Vendor satisfaction scores
Operational • Performance against annual / quarterly
objectives


How to approach measurement

Decide what to measure, and why it is important
Establish a baseline and “key performance indicators” (kpi’s)
Put into place data collection systems
Collect the data
Analyze and understand the information, develop insights and circulate
the results
Take action (challenge, remediate, or celebrate!)

And most importantly, integrate measurement goals into performance
plans


Marketing measurement overview


Marketing as “Operations”
Operations is often overlooked as an integral part of marketing
Marketers are skilled brand builders, product developers and managers, creative
artists and writers and campaign managers, but not necessarily “supply chain” or
operations experts
Marketing IS a supply chain
Traditionally marketers are not trained in professional project management
Marketing Communications, Marketing Services or agencies often serve
as the de-facto project manager
Calendars and projects are not integrated into a single, comprehensive
and holistic view of marketing activities
Software applications specific to marketing management have been available for only
a few years
Status is correct until one minute after you ask for it.
“Why would I need automation. I have it all in my head!”


The 5th Role of Marketing

Product &
Brand
Innovation

Marketing
Operations

Voice of the
Revenue
Customer


The Marketing Operations Function


What should Marketing Operations do?
• Establish, manage and report on the linkage of objectives with results


What should Marketing Operations do?
• Establish, manage and report on the linkage of objectives with results

• Run the marketing “business” (Project Management Office)
• Manage and optimize resources (Marketing Governance)
• Make it easy for everyone else to get their jobs done!


The Marketing Operations Function

Most commonly in-sourced to respective departments


Marketing Operations
Marketing
Marketing Planning/Project Management Office Planning/PMO

Create and monitor the annual Marketing Plan
Create and monitor the integrated Marketing Calendar
Work with Brand, Product/Innovation, Voice of the Customer and Life Cycle
Marketing to translate corporate goals into action plans
Hold quarterly reviews in conjunction with the CMO
Monitor and publish reports and dashboards that combine customer, operational
and financial metrics and Key Performance Indicators
Key Technologies: Marketing Resources Management (MRM), Marketing
Performance Management (MPM)
Measurement: On-time and on-budget performance of action plans in conjunction
with assigned managers


High-level workflow at a major corporation


Budget &
Budget and Finance Finance
Manage and control the marketing budget
Monitor and report financial and operational metrics
Translate “finance speak” into “marketing speak”
Assist Marketing Planning with mapping of corporate objectives to budgets, and
results
Recommend to CMO the optimal allocation of marketing dollars
Provide Sarbanes-Oxley oversight
Measurement: performance against plan(s), increased Y-O-Y ROMI


Shared
Shared Services Services

Manage marketing services
Graphic arts and writing
Web and email operations
Marketing research & analytics
Traffic and production management
Manages day-to-day relationship with Agencies of Record
Manage or coordinate with other marketing-related functions like Customer
Service, Call Centers, or Fulfillment Centers
Maintain labor standards and hire the optimal mix of staff, freelance and agency
resources
Maintain service level standards and enforce brand consistency
Measurement: reduce cost of marketing while improving service delivery to other
marketing units


Marketing Automation Ecosystem
Legend
CRM: Customer Relationship Marketing
ERP: Enterprise Resource Planning
COMPANY KPI: Key Performance Indicators
Ver 2.2 MOM: Marketing Operations Management
SFA: Sales Force Automation
Entity

SALES MARKETING FINANCE
Function

Lifecycle Marketing Channel & MPM/ Marketing
Corp. Comm Brand/Product
Sales Operations Demand Management Partner Analytics & Communications
PR Management
Customer Service Mgmt ** Research Marketing Svcs

Analytic
Tools
SFA Campaign Digital Marketing Procurement
CRM PR/Media
Database Mgmt ** Asset Operations ------------
Management Mgmt Mgmt Accounting
Application

KPI
MARCOM
Dashboards
Sales Self-Service
Enablement
System

Marketing
Corporate
Data Mart
Info Systems
Optionally, MOM could
connect directly to an ERP
system for replenishment of
packaging & print materials
(i.e., user manuals)

Rented Lists/ Company
Company Content Knowledge
External Intranet/
Website Management Management
CUSTOMERS
Sources Extranet VENDORS
Repository Repository
AGENCIES

**Note: Companies operating Partner & Channel
© 2007 MarketSphere Consulting LLC EMPLOYEES
Management programs use PRM solutions.


Example of a Solution Topology
_Business Units
_Corporate Marketing
_Agencies/Suppliers

User Portal

3rd Party Vendor
Marketing
(Instructions Only)
Marketing
Budgets &
Marketing Offer & Integrated Campaign
Forecasts
Campaign Campaign Marketing Execution
-----------
Planning Workflow Calendar (Future)
Financial
Financials Information

Connectivity
Digital Asset
Management
Administration & Reporting Infrastructure

Ariba

_Central Repository of Marketing Charters
_Documentation of Approvals
Marketing _Financial Information
System _Creative, Media and Project Briefs
of Record _Integrated Calendars & Project Status
_Creative Materials (bridge to DAM)
_Workflow rules
** Customer Contact Rules and Event Triggers (later)


EMM Functionality

Marketing Campaign Email, Web and Digital Fulfillment, Marketing ROI,
Resource Management, Website Digital Asset Key Performance
Management Customer Analytics Analytics Management Indicators &
& Modeling Dashboards

Marketing Profiling & Email Production Digital Asset Analytical data mart
Planning Portal Segmentation Management
Web Forms Hyperion, Cognos, or
Planning Campaign Mgmt. Workflow Business Objects
Web Content
(Audience Selection)
Calendar Management Job Starter Custom-built
for direct mail, e-mail, marketing information
Workflow Web Analytics Procurement & RFP
telemarketing, direct dashboards
Job Starter Collateral
sales Reporting Tools
Customization &
Financials* Lead Management Self-Publishing*
Procurement & Event-based
RFP* Marketing
Predictive Modeling
CRM/Marketing
data mart
SAS Analytics add-on

Marketing System of Record


Expected outcomes

Help
Vision & Improve Apply
People
Roadmap Process Technology
Change

Successful linkage between company strategy and marketing tactics
Reduction in unaligned projects
Better insight into marketing’s return on investment and performance across
product lines, markets and time periods
Forward visibility into an integrated marketing calendar and future resources
needs/requirements
“New money” found from reduced cost of re-work and consolidation of vendors
Higher work-place satisfaction and growth opportunities for staff


Suggestions
Educate yourself and your peers
Learn about available software applications
Aprimo
Unica
Others (mid-market or departmental)
Learn more about marketing measurement
If you see an opportunity to improve operations:
Find a corporate objective that would benefit directly from a more operationally
effective marketing department
Engage an executive sponsor
Partner early with IT and Finance
Design a roadmap detailing the steps to be taken
Include programs for change management
Have patience, a lot of patience

31

Resources
For more information, contact:
Aquent Consulting www.aquent.com
MarketSphere emm.marketsphere.com
Destination CRM (Marketing Automation) www.destinationcrm.com
Henry Stewart Conference on Marketing Operations
www.damusers.com
Ian Michaels / Aberdeen Group www.aberdeen.com
Suresh Vittal / Forrester Research www.forrester.com
Kim Collins, PhD. / Gartner Group www.gartner.com
Gary Katz / Marketing Operations Partners www.mopartners.com
Pat LaPointe / MarketingNPV www.marketingnpv.com
Aprimo Inc. www.aprimo.com
Unica Corp. www.unica.com


Q&A

Let’s hear your questions
and comments!


Wrap Up

Thanks for
attending today’s
session!
For a copy of the PowerPoint slides:
mayer.becker@marketsphere.com


Aquent CRE8 Measurement M Becker

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