metrics and analytics workshop : how to harness the power of data to build marketing credibility
DESCRIPTION
It's more crucial than ever that we as marketers not only know how our programs are performing, but also possess the data to prove that performance. We must talk the talk in terms of forecasting and reporting, and walk the walk to the revenue table by leveraging metrics that matter. Join this workshop with Jon Miller, VP and Co-founder of Marketo, as he provides tips for understanding and interpreting marketing results, as well as best practices for harnessing data to not only prove, but improve ROI. -You'll see how the experts at Marketo do it themselves. You'll discover: -How to use the right metrics to set and justify budgets -The power and influence of revenue cycle metrics -Examples of Marketo's own program metrics and performanceTRANSCRIPT
© 2014 Marketo, Inc. Marketo Proprietary and Confidential
Metrics and Analytics Workshop
How to Harness the Power of Data to Build Marketing Credibility
Page 2© 2014 Marketo, Inc. @jonmiller
Hi, I’m Jon MillerVP Marketing and Co-Founder, Marketo
@jonmiller
1. My first child was born the same month that we incorporated Marketo
2. Born in Ethiopia3. Undergraduate degree in Physics at Harvard4. I have a top secret “Q” clearance from DOE
Page 3© 2014 Marketo, Inc. @jonmiller
Topics
• Building Marketing Credibility
• The Right Metrics
• Revenue Metrics• Marketing Program
Performance
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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
Page 5© 2014 Marketo, Inc. @jonmiller
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 generatedDon'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
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When Metrics Take Away Credibility
Vanity MetricsSound good and impress people, but don’t measure impact on revenue or profitability
Activity MetricsMeasure what you do instead of what results and impact you have
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When Metrics Take Away Credibility
Cost MetricsFrame marketing in terms of cost and spending instead of results and outcomes
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Metrics That Give Marketing Power“Speak the Language of Business”
Aggregate impact on company revenue; pipeline performance; predictive forecasts
Revenue Cycle and Forecasts
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Metrics That Give Marketing Power“Speak the Language of Business”
Incremental revenue contribution and ROI of individual marketing programs
Program Performance
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Revenue Cycle Metrics
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Marketo’s Revenue Cycle
TOFU MOFU
Opportunity CustomerLead
Sale
s Le
ad
Nurturing Database
BOFU
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Marketo’s Revenue Cycle
Opportunity CustomerLead
Sale
s Le
ad
Nurturing Database
Exposed to us via content, brand, or word of mouth
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Marketo’s Revenue Cycle
Opportunity CustomerLead
Sale
s Le
ad
Nurturing Database
Feels a relationship and trust with us
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Marketo’s Revenue Cycle
Opportunity CustomerLead
Sale
s Le
ad
Nurturing Database
Names are just names.
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Marketo’s Revenue Cycle
Opportunity CustomerLead
Sale
s Le
ad
Nurturing Database
Meaningful interaction with us
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Marketo’s Revenue Cycle
Opportunity CustomerLead
Sale
s Le
ad
Nurturing Database
Meaningful interaction and qualified demographics
Nurture until ready for next step
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Marketo’s Revenue Cycle
Opportunity CustomerLead
Sale
s Le
ad
Nurturing Database
Marketing qualified lead (score > 100) – SDR reach-out
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Marketo’s Revenue Cycle
Opportunity CustomerLead
Sale
s Le
ad
Nurturing Database
Qualified as sales-ready by SDR
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Marketo’s Revenue Cycle
Opportunity CustomerLead
Sale
s Le
ad
Nurturing Database
Accepted and actively worked by sales
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Revenue Cycle Modeler
Screenshot: Marketo Revenue Cycle Analytics
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Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.
Key topic areas:• Balance (Reach)• Flow• Conversion• Velocity Trends over time
Screenshot: Marketo Revenue Cycle Analytics
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Use Metrics to Set & Justify Budgets
New Targets
60,000
InventoryOf ActiveTargets
131,000
New MQLsScore>100
23,00015.3%
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
Inb
ou
nd
/ P
rog
ram
s
120,000(900K DB Total)
New Names
New SQLs
922
2.4%
1.9%
75%
Win
s35% win
Page 23© 2014 Marketo, Inc. @jonmiller
Marketing Forecasts
Get The “Definitive Guide to Marketing Metrics & ROI”http://marketo.com/DG2MM
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Program Performance
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Ways that Companies Measure Program ROI
• 20%: No tracking• 45%: Single Attribution • 21%: Attribute Across Multiple Programs and
People• 11%: Test and Control Groups• 3%: Market Mix ModelingSource: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study
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Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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Accurately Tracking “Investment” vs Budget
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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
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Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
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Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
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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
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Screenshot: Marketo Revenue Cycle Analytics (actual data)
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Source: Marketo Revenue Cycle Analytics, Nov 2013* Percentage of all programs in channel that achieve MT Ratio > 5
% Above Min*
89%
41%
75%
57%
66%10.4
73%
67%
76%
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Example: Test and Control
Source: Lenskold Group
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Planning for Marketing MeasurementMeasure 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
Page 37© 2014 Marketo, Inc. @jonmiller
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. A trusted marketing forecast is the single most important step to make marketing a revenue driver, not a cost center
@jonmiller