CEMA

Dan Fannin: VP Business Process Excellence @ Regal Beloit

Marketing & Measuring ROI

The Burning Question?How do we Measure Marketing Success?

Objectives

MarketingStrategy

StrategyDeployment

SuccessMetrics

StrategyFine-Tuning

Marketing

Product

Place Promotion

Price

Target Market

E-mailMarketing

Advertising

TradeShows

DigitalMarketing

SocialMedia

SalesPromotions

DirectMarketing

PublicRelations

SalesLiterature

TradePublications

DirectSales

Campaigns

MarketingModels

Digital Traditional

Event/Field

MerchandisingDemonstrations

Trade EventsField Sales

PR/Media Relations

In Store/P.O.S.

Direct Mail

Print Collateral

Website

Social Media/YouTube

Web Banner Ads

eMail

SMS/MobilePrint Advertising

Marketing Campaign Models

Three key customer touchpoints

Tradeshow Leads

eMail Blast Leads

Trade Publication

Leads

Targeted Industry Research

Other Leads

Goal: Marketing campaigns are to convert leads to customers.

Marketing CampaignsDesigned for one thing – Lead Generation

This Photo by Unknown Author is licensed under CC BY-SA

Tradeshow Leads

eMail Blast Leads

Trade Publication

Leads

Targeted Industry Research

Other Leads

Marketing CampaignsDesigned for one thing – Lead Generation

This Photo by Unknown Author is licensed under CC BY-NC

Hand off to company Sales Professionals

Marketing CampaignsLead Generation to Customer

This Photo by Unknown Author is licensed under CC BY-NC-ND

Sales Professional Role is convert Leads to Orders

25% of the leads you generate are totally unqualified; they won't ever buy.

50% of the leads generated are qualified; but not ready to buy right now.

25% leads are legitimate and should advance to sales.

Sales reps make 1.3 (average) call attempts before giving up on a lead.

Research: Source: 2017 Gleanster Research and Forrester Research studies

2017 Gleanster and Forrester Study

Current State of Lead Generation

Tradeshow Leads

eMail Blast Leads

Trade Publication

Leads

Targeted Industry Research

Other Leads

This Photo by Unknown Author is licensed under CC BY-NC-ND

Research shows only 20% of sales leads are ever followed up. In other words, 80% are lost without

trace simply due to lack of follow-up.https://www.marketingdonut.co.uk/sales/sales-techniques-and-negotiations/why-you-must-follow-up-leads

Lead: Opportunity Generation - The ScienceFocuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.

Lead: Demand Generation - The ArtFocuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer.

Opportunity Generation – primary objectives• Know and profile of your audience• Identify quality leads and prospects• Identify specific contact for sales follow-up• Provide qualified leads and pass to sales

Demand Generation – primary objectives• Generate interest and demand• Educate and provide insight• Drive brand awareness and perception • Increase audience ‘top of mind’

Lead Definitions

Lead: Opportunity Generation - The ScienceFocuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.

Lead: Demand Generation - The ArtFocuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer.

Opportunity Generation – primary objectives• Know and profile of your audience• Identify quality leads and prospects• Identify specific contact for sales follow-up• Provide qualified leads and pass to sales

Demand Generation – primary objectives• Generate interest and demand• Educate and provide insight• Drive brand awareness and perception • Increase audience ‘top of mind’

Lead Definitions

In-Tangible Metrics

Total Visits First Time Visitor Pages Visited Return Visits Traffic Source Click Thru Rate Time on Page

Content Download Unique Visitors Pg View /Session Referral Traffic Traffic Rate New Content Map Heat Map / Web Pg

Key Word Perform SEO Traffic No. Pageview /Pg Content Backlog New Content Views Avg Time / Content Top Post Viewed

Domain Authority Link Building Metric Page Load timeMobil Ready Organic Search Registration Use of Apps & Tools

Twitter Tweets Twitter Followers Twitter Share Facebook Likes Facebook Views Facebook Share Facebook Comment

YouTube Likes YouTube Views YouTube Shares Instagram LinkedIn Social Interactions Follower KPI

Bad Email Address Bounce Rate Delivered Rate Total Open Rate Unique Open Rate Click thru Rate Unique Click Thru

Spam Capture Rate Unengaged Rate Forward Rate List Growth Rate Opt-out Rate Subject/Open Rate Complaint Rate

Unknown order conversion rate.

In-Tangible Metrics

Total Visits First Time Visitor Pages Visited Return Visits Traffic Source Click Thru Rate Time on Page

Content Download Unique Visitors Pg View /Session Referral Traffic Traffic Rate New Content Map Heat Map / Web Pg

Domain Authority Link Building Metric Page Load timeMobil Ready Organic Search Registration Use of Apps & Tools

Twitter Tweets Twitter Followers Twitter Share Facebook Likes Facebook Views Facebook Share Facebook Comment

YouTube Likes YouTube Views YouTube Shares Instagram LinkedIn Social Interactions Follower KPI

Unknown order conversion rate.“Ratio to Sales” metrics can build

ROI metrics to measure campaign effectiveness.

Bad Email Address Bounce Rate Delivered Rate Total Open Rate Unique Open Rate Click thru Rate Unique Click Thru

Spam Capture Rate Unengaged Rate Forward Rate List Growth Rate Opt-out Rate Subject/Open Rate Complaint Rate

Key Word Perform SEO Traffic No. Pageview /Pg Content Backlog New Content Views Avg Time / Content Top Post Viewed

Research from InsideSales.com shows that 35–50% of sales go to the vendor that responds first.

https://www.gartner.com/en/sales-service/insights/challenger-sale

The Challenger SaleCompete and win in a customer-empowered world

2011 by Matthew Dixon & Brent Adamson

Lead: Opportunity Generation - The ScienceFocuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.

Lead: Demand Generation - The ArtFocuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer.

Opportunity Generation – primary objectives• Know and profile of your audience• Identify quality leads and prospects• Identify specific contact for sales follow-up• Provide qualified leads and pass to sales

Demand Generation – primary objectives• Generate interest and demand• Educate and provide insight• Drive brand awareness and perception • Increase audience ‘top of mind’

Lead Definitions

The Burning Question?How do we Measure Marketing Success?

Historically: Number of New Products Introduced!

Number of New Catalogs Produced

Number of Sales Promotions and People Trained

Number of Distributor Visits and Number Trained

Number of OEM Visits and Number Trained

Number of New Customers (Count)

Number of Sales Dollars Generated (about once every 3 years)

But, when the market slowed,Marketing Budgets were the first to be reduced.

Number of New Trade Publications Ads / Articles

The Burning Question?How do we Measure Marketing Success?

“ROI is the most important measurement for marketing.”

The best way to measure marketing effectiveness is to calculate the return on investment using three factors:

• What is the new Customer Lifetime Value?

Having these three pieces of data allows us to make smarter marketing decisions

and where we should spend money.

• What is the Cost to Acquire Customer?• What Call To Action converted them to a paying customer?

Customer Lifetime Value (CLV)

1. Measure the amount of gross profit or sales that is generated from a customer over the entire time they do business with a company.

What is the new Customer Lifetime Value?

https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp

Gross Profit – Marketing CampaignMarketing Campaign

Annual Sales – Marketing CampaignMarketing Campaign

or

Customer Lifetime Value – Marketing CampaignMarketing Campaign

2. Or, measure annual volume of sales that is generated from a customer.

2. As a business sales term, cost of acquisition is tied to marketing and sales campaigns because the more streamlined those campaigns become, the lower the customer cost of acquisition will be.

Cost to Acquire Customer (CAC)

1. Cost of acquisition is a term used across business and accounting to describe the total costs incurred when signing a new customer.

What is the Cost to Acquire Customer?

Sales Activity + Engineering Support + Marketing Campaign# New Customers

https://www.investopedia.com/terms/c/costofacquisition.asp

3. Since these costs can be quite high, it is a standard rule of thumb in business that it costs more to sign a new client than to retain a current client.

Cost toAcquire aCustomer

(CAC)

Monetization (LTV)

An out of balance business model

MarketingCost

SalesCost

SamplesCost

EngineeringCost

What is the Cost to Acquire Customer?

Cost toAcquire aCustomer

(CAC)

Monetization (LTV)

A well balanced business model

What is the Cost to Acquire Customer?

Call To Action (CTA)

Call to Action is a campaign comparison model designed to maximizing spend.

https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp

VS.

Customer Lifetime Value – Tradeshow Marketing Campaigns (All shows)Tradeshow Marketing Campaigns (All shows)

Customer Lifetime Value – Web Marketing Campaigns (All)Web Marketing Campaigns (All)

Customer Lifetime Value – Publication Marketing Campaigns (All)Publication Marketing Campaigns (All)

VS.

What Call To Action converts lead to customer?

Summary

Use ‘Ratio to Sales’ metrics and build ROI metrics to measure campaign effectiveness.

• What is the new Customer Lifetime Value?• What is the Cost to Acquire Customer?• What Call To Action converted them to a paying customer?

As you consider or expand your Marketing Metrics,Metrics should have Orders or Sales in the calculation!

Questions