itsma online survey: communicating marketing’s impact and roi to the c-suite

Download ITSMA Online Survey: Communicating Marketing’s Impact and ROI to the C-Suite

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  1. 1. Communicating Marketings Impact and ROI to the C-Suite Julie Schwartz, Senior Vice President Research and Thought Leadership, ITSMA 2015 Measuring and Communicating Marketing Impact Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Abbreviated Summary | July 2015 This abbreviated summary highlights some of the most significant findings of ITSMAs Measuring and Communicating Marketing Impact. A more in-depth analysis can be found in the full report http://www.itsma.com/research/itsma-online-survey-communicating-marketings-impact-roi-c-suite/
  2. 2. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 2 What is most responsible for the change in marketing context? Marketings stature in the organization has changed dramatically Marketing is a strategic function and a core part of the executive leadership team 45% Today (N=67) 10% Three Years Ago (N=59) New marketing technologies enable marketing to track and report activity and outcomes Recognition that buyer behavior has changed and marketing needs to own pipeline A change in leadership influenced the growth of the marketing department beyond the singular function of lead generation Demand for all areas of business to show value; visibility of analytics and Big Data at the C-suite level New CMO and realizing the importance of differentiation and leverage that only marketing can provide for the next phase of growth and staying relevant A movement toward ROI-based marketing or marketing that impacts the business. Not just design/branding-based marketing Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015
  3. 3. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 3 Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015 % of Respondents (N~66) Despite having new marketing technologies and tools that enable us to track and measure marketing activity like never before, of marketers still struggle to prove business impact. 64%
  4. 4. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 4 To build trust, start with data integrity and then go beyond the data: What is your story, who are you telling it to, and how? Which types of data do your organizations executives request most? Customers Markets Contacts Whom Marketing is Nurturing Sales- Accepted Leads Marketing Programs The Competition CEO CFO/ Finance BU or Division leaders (P&L owners) Sales Note: Multiple responses allowed. % of Respondents (N~54) Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015 High Medium Low
  5. 5. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 5 How do you know what YOUR executives want to hear? Ask them! What is the business strategy? How do you want marketing to contribute to that strategy? How will you evaluate our contribution?
  6. 6. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 6 Marketers who communicate outcome-based data build trust among the C-suite Marketing is a strategic function Counting Effort Tracking Costs Counting Results Measuring Efficiency Reporting Outcomes Anticipating Outcomes Forecasting Outcomes Articles/Blog Posts Datasheets Created Press Releases Written Events Produced Campaigns Launched Budget Category Expenditures Media Mentions Trade Show Leads Website Registrations Downloads New Contacts Click Through Rates Leads Generated Campaign ROI Cost per Lead Cost per Sale Program to Total Spend Ratio Program to People Ratio Market Share Customer Lifetime Value Conversion Rates Pipeline Contribution Total Contract Value Brand Awareness/ Preference Share of Wallet Adoption Rates Customer Sat/Loyalty Rate of Growth to Market Growth Ratio Propensity to Purchase Customer Retention/ Renewal Likelihood to Defect Marketing Mix Optimization ACTIVITY OUTCOME SOutput- Based Operational Business Impact Leading- Indicators Predictive Activity Metrics Cost
  7. 7. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 7 Marketings ultimate objective is to build business value, not quarterly bookings Your metrics framework needs to balance three goals Revenue/ Contribution to Sales Relationships Reputation/ Brand Perception
  8. 8. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 8 Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015 Most marketers are measuring ROI quarter-by-quarter; they are measuring leads, not business outcomes of marketers use 70% 57% Focusing too much is a mistake on to measure ROI Number of Sales-Qualified Leads only track ROI over a period of 3 months or less
  9. 9. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 9 Linking marketing activity to business impact is a multiyear journey requiring process and behavior change Build trust in marketing and marketings data Develop processes and supporting infrastructure to ensure data integrity Implement a marketing metrics framework based on business outcomes Use your data to tell a good story Foster a culture of accountability Educate marketers on how they personally contribute to business goals Set performance targets for every marketing program and campaign and measure against them Create business value in addition to campaigns and leads Demand generation and the pipeline are important; but so are customer lifetime value, brand equity, and propensity to defect Take an experimental approach based on hypothesis testing and start building predictive models To get executive leaders to embrace marketing as a key driver of business performance:
  10. 10. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 10 Study Methodology Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015 Participating Companies (partial list) Amdocs Aranca Atos Autodesk Avanade Avaya Aviat Networks Baufest Black & Veatch Capgemini CDW CGI Ciena Cisco Cognizant CPqD Cyient Limited Datapipe Deloitte Diebold Dimension Data ECI Healthcare Partners EMC EXTOL International EY FIS Global Fujitsu Genpact Giffhorn HCL Technologies Hitachi Data Systems HP IBM Juniper Networks KPMG Netmagic Solution Neudesic NIIT Tech Online Business Systems Persistent Systems Polycom Protiviti PwC Rolta Salesforce SBS Group Schneider Electric ServiceSource SunGard Symantec Tektronix TeleTracking Technologies UBM Tech Unisys VMware Xerox Web-based Survey Survey invitations were emailed during April 2015 to select senior marketing executives in the ITSMA community 67 Senior marketers completed the survey The Data Was Analyzed by: Ability to Use Data to Measure and Communicate Marketings ImpactQualitative Interviews 12 Marketing leaders were interviewed by ITSMA Back of the pack. We track marketing activity, but rely on anecdotal info to show impact 15 52 31 2 Average. We regularly collect and communicate marketing data Above average. We use marketing data to optimize performance Leading edge. We directly tie marketing activity to business results Data Savvy
  11. 11. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 11 52%48% 64%36% 68% 15% 12% 5% 8 9 10 9 6 22 12 24 Less than $50M $50 99M $100 249M $250 499M $500 999M $1 4.9B $5 9.9B $10B or More Respondent Demographics Job Title % of Respondents (N=67) Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015 Size of Solutions Business Type of Company Physical Location Industry Marketing director/ manager Marketing executive (CMO, SVP, VP, AVP) Both products and services Primarily services (10% or less revenue from products) 25 16 15 13 13 9 8 Other technology hardware systems and solutions Outsourcing (technology/business process) Telecommunications and network systems/solutions Computer systems and solutions Software solutions Non-IT professional services/consulting/business services IT professional services/consulting North America Europe Asia South or Central America
  12. 12. ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 12 Want to learn more? Heres what is included in the full study For More Information Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA jschwartz@itsma.com +1-781-862-8500, Ext. 112 Slide Executive Summary 3 Methodology and Respondent Demographics 25 Detailed Findings 38 Business and Marketing Performance 38 Using Marketing Data 50 Communicating Marketings Impact 64 Marketing Dashboards 76 Marketing ROI 89