aquent cre8 measurement m becker
TRANSCRIPT
Measuring Marketing Results
Mayer G. BeckerNational Practice DirectorMarketSphere Consulting [email protected](312) 357-4405
CRE8 Conference 2008 CRE8Summit.com | Presented by AGI agitraining.com
CRE8 Conference 2008 | CRE8Summit.comJanuary 24, 2008 © 2007 MarketSphere Consulting LLC 2
Welcome!
Mayer G. Becker25-year career in marketingDirector of Marketing – American Bar AssociationDirector 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 LLCChicago AMA Chapter Member, Voting Member, DMA
CRE8 Conference 2008 | CRE8Summit.comJanuary 24, 2008 © 2007 MarketSphere Consulting LLC 3
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.
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Agenda
Taking your pulse – what’s important to you?Framing the challenge for marketingWhy talk measurement?3 Dimensions of Marketing MeasurementAn introduction to Marketing OperationsEnterprise Marketing ManagementResources to learn moreQ & A
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A vignette from the past
Mutli-national software company with 375 products/16 product linesProblem: 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.
SolutionEstablished standards and key milestones for each type of activityEstablished 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
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Problem-solving results
HelpPeopleChange
ApplyTechnology
ImproveProcess
4 Qtr Planning Horizon
Integrated Calendar
Standards
Management tool to track projects
Reports based on Milestones
Weekly Report & Red Flag Status
EVP Support
Deliver as Promised
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.
CRE8 Conference 2008 | CRE8Summit.comJanuary 24, 2008 © 2007 MarketSphere Consulting LLC 7
Framing the challenge for marketingInternal issues
CEO urges marketing to lead innovation and growthCFO wants visibility into marketing performance; more accountability; Sarbanes-OxleyDisconnect between the languages of finance and marketingNew Chief Marketing Officer (CMO) every 24 months. New CEO, CFOFlat or reduced budgets and headcount in marketing (and elsewhere)Staff turnover
External issues• Consumers have more choice• Faster time-to-market• 24x7 markets• Traditional competitors have
become more effective marketers• New competitors from internet
sites• Manage and integrate proliferating
communication channels• Agencies as project resources
versus long-term AOR• Agency staff turnover• Short-term, quarterly financial
reporting for public companies
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Industry snapshot
The Marketing function is the last major business function to be addressed by technology, beginning with CRM in the late 1990’sSince 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 valueGather and analyze significant amounts of customer data, to enable greater insight into customersGather and analyze operational and financial data, to improve the effectiveness of programs while driving down the cost of marketingPreserve 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.
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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 partnerwith 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: "Our tests proved that budget was sustained and increased by adding transparency and accurate metrics."
Peter Kim, Forrester Research, March 9, 2007
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Ancient adage
“If it can be measured, it can be managed.Quote of Unknown Origin, 20th Century?
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3 dimensions of marketing measurement
Customer
Financial
Operational
Measures customer performance against established targets
Measures financial performance against established targets
Measures operational performance against established targets
CRE8 Conference 2008 | CRE8Summit.com
3 dimensions of marketing measurement
Customer
Financial
Operational
Measures customer performance against established targets:
• Customer lifetime value
• Intent to re-purchase
• Customer satisfaction quotient
• Average invoice or revenue per sales ticket
• Number of visits or purchases/time period
• Churn (especially trend)
• Net new customers
• Cost per acquisition or retained customer
• Brand recognition
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3 dimensions of marketing measurement
Customer
Financial
Operational
Measures financial performance against established targets:
• Financial measures; “budget to actual”
• Brand asset value
• Customer financial measures; lifetime value, cost of acquisition, cost of retention
• Return on Marketing Investment (ROMI)
• Cost per lead, cost per sale
• Gross and net profit margins
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3 dimensions of marketing measurement
Customer
Financial
Operational
Measures operational performance against established targets:
• Number of projects
• Projects on time/within X days
• Staff hours utilized; agency hours
• Ratio of staff to freelance hours
• Agency satisfaction scores
• Vendor satisfaction scores
• Performance against annual / quarterly objectives
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How to approach measurement
Decide what to measure, and why it is importantEstablish a baseline and “key performance indicators” (kpi’s)Put into place data collection systemsCollect the dataAnalyze and understand the information, develop insights and circulate the resultsTake action (challenge, remediate, or celebrate!)
And most importantly, integrate measurement goals into performance plans
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Marketing measurement overview
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Marketing as “Operations”
Operations is often overlooked as an integral part of marketingMarketers are skilled brand builders, product developers and managers, creative artists and writers and campaign managers, but not necessarily “supply chain” or operations expertsMarketing IS a supply chainTraditionally marketers are not trained in professional project management
Marketing Communications, Marketing Services or agencies often serveas the de-facto project managerCalendars and projects are not integrated into a single, comprehensiveand 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!”
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The 5th Role of Marketing
BrandBrand
RevenueRevenue Voice of theCustomer
Voice of theCustomer
Product &InnovationProduct &Innovation
MarketingOperationsMarketingOperations
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The Marketing Operations Function
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• Establish, manage and report on the linkage of objectives with results
What should Marketing Operations do?
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• 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!
What should Marketing Operations do?
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The Marketing Operations Function
Most commonly in-sourced to respective departments
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Marketing Operations
Marketing Planning/Project Management OfficeCreate and monitor the annual Marketing PlanCreate and monitor the integrated Marketing CalendarWork with Brand, Product/Innovation, Voice of the Customer and Life Cycle Marketing to translate corporate goals into action plansHold quarterly reviews in conjunction with the CMOMonitor and publish reports and dashboards that combine customer, operational and financial metrics and Key Performance IndicatorsKey Technologies: Marketing Resources Management (MRM), Marketing Performance Management (MPM)Measurement: On-time and on-budget performance of action plans in conjunction with assigned managers
MarketingPlanning/PMO
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High-level workflow at a major corporation
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Marketing Operations
Budget and FinanceManage and control the marketing budgetMonitor and report financial and operational metricsTranslate “finance speak” into “marketing speak”Assist Marketing Planning with mapping of corporate objectives to budgets, and resultsRecommend to CMO the optimal allocation of marketing dollarsProvide Sarbanes-Oxley oversightMeasurement: performance against plan(s), increased Y-O-Y ROMI
Budget &Finance
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Marketing Operations
Shared ServicesManage marketing services
Graphic arts and writingWeb and email operationsMarketing research & analyticsTraffic and production management
Manages day-to-day relationship with Agencies of RecordManage or coordinate with other marketing-related functions like Customer Service, Call Centers, or Fulfillment CentersMaintain labor standards and hire the optimal mix of staff, freelance and agency resourcesMaintain service level standards and enforce brand consistencyMeasurement: reduce cost of marketing while improving service delivery to other marketing units
SharedServices
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Marketing Automation Ecosystem
COMPANY
SALES MARKETING FINANCE
Lifecycle MarketingDemand Management
Customer Service
MarketingCommunicationsMarketing Svcs
Sales OperationsMPM/
Analytics &Research
Brand/ProductManagement
CompanyWebsite
MarketingData Mart
AnalyticTools
CompanyIntranet/Extranet
KPIDashboards
Procurement------------
Accounting
Entit
yFu
nctio
nSy
stem
CRM CampaignMgmt **
Optionally, MOM could connect directly to an ERP system for replenishment of packaging & print materials
(i.e., user manuals)
SFADatabase
SalesEnablement
LegendCRM: Customer Relationship MarketingERP: Enterprise Resource PlanningKPI: Key Performance IndicatorsMOM: Marketing Operations ManagementSFA: Sales Force Automation
VENDORSAGENCIES
Knowledge ManagementRepository
Content ManagementRepository
Corp. CommPR
PR/MediaManagementApplication
DigitalAssetMgmt
MarketingOperations
Mgmt
MARCOM Self-Service
EMPLOYEES
CorporateInfo Systems
Channel &PartnerMgmt **
CUSTOMERS
© 2007 MarketSphere Consulting LLC
Rented Lists/External Sources
**Note: Companies operating Partner & Channel Management programs use PRM solutions.
Ver 2.2
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Example of a Solution Topology
User Portal
Connectivity
Administration & Reporting Infrastructure
Marketing System
of Record
Digital Asset Management
Financials
Ariba
_Business Units_Corporate Marketing_Agencies/Suppliers
_Central Repository of Marketing Charters_Documentation of Approvals_Financial Information_Creative, Media and Project Briefs_Integrated Calendars & Project Status_Creative Materials (bridge to DAM) _Workflow rules** Customer Contact Rules and Event Triggers (later)
Marketing Campaign Planning
MarketingBudgets &Forecasts-----------
Financial Information
IntegratedMarketing Calendar
Offer & CampaignWorkflow
MarketingCampaignExecution(Future)
3rd Party Vendor(Instructions Only)
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EMM Functionality
Marketing ResourceManagement
Campaign Management, Customer Analytics& Modeling
Email, Web and Website Analytics
Digital Fulfillment, Digital Asset Management
Marketing ROI, Key Performance Indicators & Dashboards
Marketing Planning PortalPlanningCalendarWorkflowJob StarterFinancials*Procurement & RFP*
Profiling & SegmentationCampaign Mgmt. (Audience Selection) for direct mail, e-mail, telemarketing, direct salesLead ManagementEvent-based MarketingPredictive ModelingCRM/Marketing data mart SAS Analytics add-on
Email ProductionWeb FormsWeb Content ManagementWeb Analytics
Digital Asset ManagementWorkflowJob StarterProcurement & RFPCollateral Customization &Self-Publishing*
Analytical data martHyperion, Cognos, or Business ObjectsCustom-built marketing information dashboardsReporting Tools
Marketing System of Record
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Expected outcomes
Successful linkage between company strategy and marketing tacticsReduction in unaligned projectsBetter insight into marketing’s return on investment and performance across product lines, markets and time periodsForward visibility into an integrated marketing calendar and future resources needs/requirements“New money” found from reduced cost of re-work and consolidation of vendorsHigher work-place satisfaction and growth opportunities for staff
HelpPeopleChange
ApplyTechnology
ImproveProcess
Vision &Roadmap
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Suggestions
Educate yourself and your peersLearn about available software applications
AprimoUnicaOthers (mid-market or departmental)
Learn more about marketing measurementIf you see an opportunity to improve operations:
Find a corporate objective that would benefit directly from a more operationally effective marketing departmentEngage an executive sponsorPartner early with IT and FinanceDesign a roadmap detailing the steps to be takenInclude programs for change management
Have patience, a lot of patience
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Resources
For more information, contact:Aquent Consulting www.aquent.comMarketSphere emm.marketsphere.comDestination CRM (Marketing Automation) www.destinationcrm.comHenry Stewart Conference on Marketing Operationswww.damusers.comIan Michaels / Aberdeen Group www.aberdeen.comSuresh Vittal / Forrester Research www.forrester.comKim Collins, PhD. / Gartner Group www.gartner.comGary Katz / Marketing Operations Partners www.mopartners.comPat LaPointe / MarketingNPV www.marketingnpv.comAprimo Inc. www.aprimo.comUnica Corp. www.unica.com
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Let’s hear your questions and comments!
Q & A
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Thanks for attending today’s
session!
Wrap Up
For a copy of the PowerPoint slides: [email protected]