Metrics and Analytics Clinic

© 2014 Marketo, Inc. Marketo Proprietary and Confidential
Metrics and Analytics Workshop
How to Harness the Power of Data to
Maximize Marketing ROI

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 generated
Don'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 Metrics
Sound good and impress
people, but don’t
measure impact on
revenue or profitability

Where Metrics Go Wrong
Activity Metrics
Measure what you do
instead of what results
and impact you have

When Metrics Take Away Credibility
Cost Metrics
Frame 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

Name
Awareness
Friend
Engaged
Target
Marketo’s Revenue Cycle
TOFU MOFU
Opportunity Customer
Lead
Sales
Lead
Nurturing
Database
BOFU

Name
Awareness
Friend
Engaged
Target
Lead
Sales
Lead
Nurturing
Database
Exposed to us via content, brand,
or word of mouth

Name
Awareness
Friend
Engaged
Target
Lead
Sales
Lead
Nurturing
Database
Feels a relationship and trust
with us

Name
Awareness
Friend
Engaged
Target
Lead
Sales
Lead
Nurturing
Database
Names are just names.

Name
Awareness
Friend
Engaged
Target
Lead
Sales
Lead
Nurturing
Database
Meaningful interaction with us

Name
Awareness
Friend
Engaged
Target
Lead
Sales
Lead
Nurturing
Database
Qualified potential customer Nurture until sales
ready

Name
Awareness
Friend
Engaged
Target
Lead
Sales
Lead
Nurturing
Database
Marketing qualified lead (score > 100) –
Sales Development Rep (SDR) reach-out

Name
Awareness
Friend
Engaged
Target
Lead
Sales
Lead
Nurturing
Database
Qualified as sales-ready by Sales
Development Rep (SDR)

Name
Awareness
Friend
Engaged
Target
Lead
Sales
Lead
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
Inventory
Of Active
Targets
131,000
New
MQLs
Score>100
23,000
15.3%
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
Inbound/
Programs
120,000
(900K DB
Total)
New
Names
New
SQLs
922
2.4%
1.9%
75%
Wins
35%
win

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

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.

The Single Most Important Metric
Revenue Engine
Effectiveness

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

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) Pipeline
Paid Programs = 42% of (MT) Pipeline

(MT) Ratio = Pipeline /
Investment
>10 is Great and <5 is Fail
Sponsored Email = 12.8, Tradeshow = 10.6,
PPC = 13.0, Webinars = 25.4, Field Events =
6.6, Content Syndication 7.7

% Programs with MT Ratio > 5
e.g. Tradeshow has good average
but 49% programs “fail”

Test and Control

Example: Test and Control
Source: Lenskold Group

Planning for Marketing Measurement
Measure 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

5 Main Opportunities to Improve ROI
Initial Prospects
Closed Sales
3. Reduce leakage
with better
integration
4. Accelerate
leakage of low-
potential prospects
5. Gain efficiency,
eliminating low
impact media
2. Improve
conversion later in
the funnel
Closing sales
Customer
Relationships
1. Target
High-Value /
High-Potential
Strategies, measurements and efforts to improve performance must be
prioritized to have the greatest impact on ROI
Source: Lenskold Group

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

Metrics and Analytics Clinic

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Metrics and Analytics Clinic

Similaire à Metrics and Analytics Clinic (20)

Plus de Marketo

Plus de Marketo (20)

Dernier

Dernier (20)

Metrics and Analytics Clinic