the modern marketer's workshop: marketing performance management

The Modern Marketer’s Workshop: Marketing

Performance Management

October 18th, 2017

©Heinz Marketing 2017

Housekeeping

• Printed your worksheets?• Fill them out as we go through the workshop

• Interactivity is highly encouraged (questions, ideas, etc.)• Send us a note in the chat box!


Presentation Layout


About the speakers

Matt Heinz

President

@HeinzMarketing

[email protected]

Brian Hansford

Senior Director

@RemarkMarketing

[email protected]


2017 BrightFunnelMPM WorkshopAgenda

The

Climate

• What Marketing Performance Management is and is not

• Why is MPM and Attribution important

• Forces driving MPM

Groundwork

• Benchmarking – current state of pipeline performance

• Marketing Sourced and Influenced Revenue

Planning

• Revenue Goals & KPIs

• Programs and Campaigns

• Budgeting for accountability and success

Turn

Budget into

Revenue

• Understanding Attribution and Influence Models

• Marketing Sourced Revenue

• Content Attribution

Guiding

Future

Performanc

e

• Identify highest performing channels and content

• Focus resources appropriately on opportunities or problems

• MPM and Planning Checklist


The Climate for Marketing Performance Management and Attribution

©Heinz Marketing 2017©Heinz Marketing 2017

Let’s Define MPM

Marketing performance management is the systematic management of marketing resources and processes to achieve measurable gain in revenues, while maintaining quality in customer experience.


A Comprehensive Process

Project Management

Budget ROI

Campaign Performance

AttributionForecasting

Models

Channel Performance

Funnel Diagnostics & Benchmarks


Marketing Performance Management is NOT

Just another reporting tool

Focused on historical data

onlyVanity metrics

Activity reporting

About generating

MQLs

More marketing technology

Attribution only


WHY Marketing Performance Management?

Marketing is the most strategic role within an

organization.

Marketers at all levels are under pressure to deliver

and prove business results.

The C-Suite wants to rely on Marketing to show where business comes

from and how to pursue future sales goals.

Facts and data will always trump guessing and

assumptions

Marketing is the only function that touches

customers in multiple ways from pre-inquiry through

post-sale.

More than ever, marketing technology enables

marketers to capture data that measures revenue

influence.


Who Uses and Values MPM and Attribution Data?


Executive• CEO

• CFO

• CSO

• CTO

• CIO

• Investors

• Board of Directors

Sales Team

• Field

• Inside Sales

• Channel

Broader Marketing

• Full Marketing Team

• Corporate, Field, Subs

Customer Success

• Managers

• Team Leads

• Reps

CMO

Strategic MPM & Attribution


Building C-Suite Credibility with MPM

Focus on revenue performanceImpact

Marketing is the most strategic function in any companyLeadership

Use financial regimen and reliable data to prove revenue performance

Credibility


Create the MPM Mindset

• A strategic process that measures how demand generation contributes to overall sales revenues while looking at customer touch points, campaigns, channels, budget, and timelines.

• MPM evaluates marketing results or output compared against its objectives and goals.

• The process of tracing each dollar of revenue back to activity touchpoints that source the revenue opportunity.


• 71.3% of marketing organizations have increased accountability for revenue goals

• 61.8% achieve or exceed revenue goals as a result of increased marketing accountability and responsibility

• The #1 ranked success factor for achieving revenue goals is an effective marketing and sales partnership


CMOs must show business impactVia the CMO Council• 2016 saw record CMO job loss• #1 Reason: CMO’s unable to show

business impact• Critical: Financial impact analytics

“…there’s nothing more necessary to CMO success and longevity than having the proof of how marketing is driving the business forward in a multiplicity of unique and powerful ways…”-Donovan Neale-May, CMO Council

“Marketers appear to be doing a poor job of quantifying and communicating the business value and financial impact of their campaigns and investments. Less than a quarter of respondents believe they are doing this extremely well or quite well.30% nearly are still putting measurement systems in place or have no solution for tracking business outcomes.”


How CEO’s and CFO’s Scrutinize Marketing

1

What are the revenue

results to-date?

2

How is budget and actual spend

tied to current revenue results?

3

How much will marketing

contribute to future revenue?

4

How can past performance

determine future revenue

outcomes?

5

What are the implications of increasing or

decreasing the marketing budget?


MPM Starts with Benchmarks


Benchmarking Process

Know where you are to get where you want to be

Accounts that drive the most business

Funnel conversion performance

Process consistency at each stage

Leads volume

Marketing Sourced Revenue

Marketing Influenced Revenue

Sales Driven Revenue

New Business

Repeat Business


Funnel Benchmarking – Conversion Stages

Sales Won, Lost, No

DecisionIdentify the opportunity conversion – Opportunity

Revenue

OpportunityProjected sales number for prospect

Sales Qualified Lead

(SQL)Depending on the threshold. For BrightFunnel – meeting stage

Sales Accepted Lead

(SAL)Identify the qualification verification stage – Sales Accepted

Marketing Qualified

Lead (MQL)Identify the first qualification stage – Marketing Qualified Lead

Marketing Inquiry Identify the first lead identification point - Captured Lead

Anonymous Touch Measure the engagement starting point – Anonymous Touch

Each transition

and conversion

stage presents

opportunities to improve performance and process consistency


Benchmarking from Bottom Up – Conversion Percentages

Opportunit

yThe customer buys the product or service.

Sales Qualified

Lead Projected sales number for qualified prospect

Sales Accepted

LeadIdentify the qualification verification stage – Sales Qualified

Marketing

Qualified LeadIdentify the first qualification stage – Qualified Lead

Marketing

InquiryIdentify the first lead identification point - Captured Lead

Anonymous

TouchMeasure the engagement starting point – Anonymous Touch

40%

20-30%

20-30%

25%

7% -10%

Starting Point

Industry Goal Gap


Benchmarking from Bottom Up – Cont.

Opportunity The customer buys the product or service.

Sales

Qualified

Lead

Projected sales number for qualified prospect

Sales

Accepted

Lead

Identify the qualification verification stage – Sales Qualified

Marketing

Qualified

Lead

Identify the first qualification stage – Qualified Lead

Marketing

InquiryIdentify the first lead identification point - Captured Lead

Anonymous

TouchMeasure the engagement starting point – Anonymous Touch

Current Goal GapTime Req’d


Identify the Funnel Strengths and Weaknesses (with Data)

Top Funnel Strength & Mid-Funnel Weakness?

Low Opportunity Win-rate?

Opportunity time to close too long?

High MQLs and Low Opportunities?

Non-Marketing Sourced Revenue Higher than

Sourced?

How many MQLs per Sales Win?

Are sales processes consistently followed

between stages?


Causes and Contributing Factors

Top Funnel Strength & Mid-Funnel Weakness?

Opportunity win-rate?

Opportunity time to close?

High MQLs and Low Opportunities?

Non-Marketing Sourced Revenue

Higher than Sourced?

How many MQLs per Sales Win?

Are sales processes consistently followed

between stages?

Outbound email without progressive nurtures

Add sales enablement. Add deep funnel content.

Sales enablement. Create new eval tools and ROI calculators

Re-define MQL threshold. Review SDR data and process.

Review lead gen and MQL data

Too many MQLs? Not enough? Mid-funnel breakdown?

Consistent prospecting and opportunity management? Sales enablement?


Planning, Revenue Goals & KPIs


The Planning Process

Assess the

Current State

1

Objectives,

Timeline,

Goals

2

Program and

Campaign

Strategy

3

Budget

4

Technology &

Data

5

KPI’s

6

Measure &

Adjust

7


What are the Sales and Revenue Goals?

• How much pipeline needed to hit goals?

• Map the benchmarks against the goals

• What channels will support the pipeline?


Goal Setting


Marketing Programs and Campaign Strategy

• Use the Benchmark data to identify strong and weak points

Full Funnel Marketing

• Sourced Revenue Goals

• Influenced Revenue Goals

Align programs and campaigns to stages to achieve goals

• Offline and Online

• Owned, Paid, Earned

Channels and Content


5 Heavyweight KPIs

1. Percent of Revenue Contribution (sourced)

2. Percent of Pipeline Contribution (influenced)

3. Opportunities Created

4. Revenue Attribution by Channel

5. Pipeline Velocity


Marketing Sourced and Marketing Influenced Revenue

Opportunities that are initially engaged and nurtured via marketing programs before escalation for sales follow up. Resurrected opportunities can be sourced if sales was inactive for

an agreed-to period of time.

Percent Revenue

Contribution

Opportunities that are engaged via attributable marketing programs during an active sales engagement

Percent Pipeline

Contribution


Channel Attributionand Opportunity Creation

Attributing revenue back to each channel that sourced, influenced, and created the opportunity for a won deal.

Channel Attribution

Opportunities created from marketing sourced & influenced leads

Opportunities Created


Velocity

Pipeline velocity is the measure of how well your leads are moving through the sales process, so you can better predict when your current leads will convert from potential sales to actual revenue you can count on.

V = #Opps x Avg Deal Value xWin%

Length Sales Cycle

Sales Pipeline Velocity


Wrap Up + Review

• Questions?

• To prepare for tomorrow, you can print these worksheets • Marketing Sourced Revenue Calculator• 2018 MPM and Planning Checklist

• Agenda for tomorrow• Continue discussing Planning and Budgeting• Measuring to Manage Performance • Attribution• Marketing & Sales Alignment• Future Programs • Planning for 2018


http://results.heinzmarketing.com/rs/966-VWE-480/images/HM - Marketing Sourced Revenue Calculator.xlsx

http://results.heinzmarketing.com/rs/966-VWE-480/images/Heinz Marketing - 2018 MPM and Planning Checklist.pdf

The Modern Marketer’s Workshop: Marketing

Performance Management

October 19th, 2017


Housekeeping

• Printed your worksheets?• Fill them out as we go through the workshop

• Interactivity is highly encouraged (questions, ideas, etc.)• Send us a note in the chat box!


2017 BrightFunnelMPM WorkshopAgenda

The

Climate

• What Marketing Performance Management is and is not

• Why is MPM and Attribution important

• Forces driving MPM

Groundwork

• Benchmarking – current state of pipeline performance

• Marketing Sourced and Influenced Revenue

Planning

• Revenue Goals & KPIs

• Programs and Campaigns

• Budgeting for accountability and success

Turn

Budget into

Revenue

• Understanding Attribution and Influence Models

• Marketing Sourced Revenue

• Content Attribution

Guiding

Future

Performanc

e

• Identify highest performing channels and content

• Focus resources appropriately on opportunities or problems

• MPM and Planning Checklist


Planning and Budgeting for Success Continued


Marketing Sourced

and Marketing Influenced

Revenue

• Sourced Revenue

• Opportunities that are initially engaged and nurtured via marketing programs before escalation for sales follow up. Resurrected opportunities can be sourced if sales was inactive for an agreed-to period of time.

• Influenced Revenue

• Opportunities that are engaged via attributable marketing programs during an active sales engagement


Where does your marketing revenue come from?

Marketing Sourced Revenue Marketing Influenced Revenue

Total Revenue Goal $10,000,000

Percentage of Total Goal 30%

Marketing Sourced Revenue

$3,000,000

Budget Breakdown 40% of demand gen budget

Primary Objectives New customer acquisition

Total Revenue Goal $10,000,000

Percentage of Total Goal

40%

Marketing Influenced Revenue

$4,000,000

Budget Breakdown 60% of demand gen budget

Primary Objectives Sales acceleration

*Use the Heinz Marketing Sourced Lead Calculator


Marketing Sourced Lead Worksheet


Measuring to Manage Revenue Performance


Planning to Measure and

Manage Performance

• System of Record

• Use Marketing Performance and Attribution Technologies

• Data management discipline

• Standardization of opportunity stages, channels, naming, field definitions, and attributes

• Standardize on monthly and quarterly reporting requirements

• Ensure all stakeholders agree to data attributes and reporting systems


Common Attribution

Models

• First Touch

• Last Touch

• First and Last Touch

• Account Based

• Linear - Evenly Weighted

• Predictive Attribution


Attribution credit weighing example

Stage Name First Touch Lead Creation

Lead Nurture

Lead to Opportunity

Full Funnel Machine Learning

Custom

First Touch 100% 0% 40% 30% 22.5% 27.54% 20%

Lead Creation 0% 100% 40% 30% 22.5% 27.54% 20%

Opportunity Creation

0% 0% 0% 30% 22.5% 19.48% 20%

Closed (Lost,Won)

0% 0% 0% 0% 22.5% 15.45% 20%

Middle Touches

0% 0% 20% 10% 10% 10% 20%


Attribution credit weighting example with a $100,000 Sale and 10 touchpoints

Stage Name First Touch Lead Creation

Lead Nurture

Lead to Opportunity

Full Funnel Event

Weighted

Machine Learning

Custom

First Touch 100% 0% 40% 30% 22.5% 27.54% 20%

$100,000 $40,000 $30,000 $22,500 $27,540 $20,000

Lead Creation 0% 100% 40% 30% 22.5% 27.54% 20%

$100,000 $40,000 $30,000 $22,500 $27,540 $20,000

Opportunity Creation

0% 0% 0% 30% 22.5% 19.48% 20%

$30,000 $22,500 $19,480 $20,000

Middle Touches

0% 0% 20% 10% 10% 10.01% 20%

$20,000 $10,000 $10,000 $10,010 $20,000

Closed (Lost,Won)

0% 0% 0% 0% 22.5% 15.45% 20%

$22,500 $15,450 $20,000



Campaign Attribution

ABM – Marketing Engaged Accounts

• Visibility into most engaged accounts

• Data enables sales and marketing alignment


Measuring Campaign Budget ROI


Anticipate CEO Objections to Attribution

No standardized

KPI’s, reports,

system of record

Bad data

Avoid ‘too good to

be true’ culture

shock

Too much info


Converting Budgets into Revenue

• Top performing CEO’s have strong financial backgrounds

• Understanding Attribution• Trace revenue to activities that sourced

opportunities• Tells you the ‘why’ behind marketing

contribution

• Understanding Influence • Activities that influenced revenue bookings

• BOTH are needed


Investing in FutureMarketing Programs

Direct budget resources to the best performing campaigns and channels based on goals. Experiment and measure success against KPIs.

Budget

Eliminate or cut low performing campaigns and channels

Eliminate or cut

Correlate percentage pipeline increase to percentage of budget investmentCorrelate


Budgeting for Success

• Setting the revenue goals

• Core focus areas to achieve the goals• Events

• Customer Marketing

• Channel Programs

• Integrated Programs

• Website

• Content

• Advertising

• Expected ROI outcomes• Events =

• Customer Marketing =

• Channel Programs =

• Integrated Programs =

• Website =

• Content =

• Advertising =


B2B Marketing Budgets - % of Revenue

• Slow Growth Budget• 5-8% of revenue

• “Average” Growth Budget• 10-12%

• High Growth Budget• 20-30%


Campaign Themes Objectives Channels Content Budget

Power Theme 1Marketing Sourced Revenue &Top Funnel Lead Gen

LinkedInWebsite-LPTradeshow EventContent syndication

VideoE-Book

$5,000 content$10,000 channels$25,000 events

Rocking Revenue Marketing Sourced Revenue & Top Funnel Lead Gen

LinkedInWebsite-LP

Workbook $5,000 content$15,000 channels

Power Theme 2Marketing Sourced Revenue & Awareness-Thought Leadership

ABM Ad Platform White paper $6,000 content$7,500 channels

Exec SuccessMarketing Influenced Revenue &Mid-Funnel Nurture

Personalized EmailRetargeting

Buyers GuideCustomer stories

$2,500 content$7,500 channel

Super Hero Marketing Influenced Revenue & Opportunity Sales Acceleration

Personalized emailPersonalized video

ROI CalculatorCustomer stories

$15,000 content

Customer Gratitude Customer Advocacy Personalized email

Teamwork Sales Enablement Personalized email Sales guide & campaign messaging

Campaign Themes Objectives Channels Budget Expected Return

Luke SkywalkerMarketing Sourced Revenue &Top Funnel Lead Gen

LinkedInWebsite-LPTradeshow EventContent syndication

$5,000 content$10,000 channels$25,000 events

X% Marketing Sourced X% Marketing Influenced

The Force – Thought Leadership

Marketing Sourced Revenue & Top Funnel Lead Gen

LinkedInWebsite-LP

$5,000 content$15,000 channels

X% Marketing SourcedX% Marketing Influenced

X-Wing Aircover Marketing Sourced Revenue & Awareness-Thought Leadership

ABM Ad Platform $6,000 content$7,500 channels


Millennium Falcon Marketing Influenced Revenue &Mid-Funnel Nurture

Personalized EmailRetargeting

$2,500 content$7,500 channel


Chewbaca Marketing Influenced Revenue & Opportunity Sales Acceleration

Personalized emailPersonalized video

$15,000 content X% Marketing SourcedX% Marketing Influenced

C3PO – Serving the Master

Customer Advocacy Personalized email

R2D2 Sales Enablement Personalized email

Marketing & Sales Alignment

• Attribution models MUST benefit both Sales and Marketing

• Educate Sales how marketing sources and influences revenue

• Shared Goals: Marketing accountability to revenue performance

• Don’t jump into buying marketing technology and reporting without a plan.

• Attribution: Use facts and data

• Customer touchpoints through funnel – track consistently

* Benchmark Example: Marketing delivers 30% of new customer business


Closing Recommendations

Strategic

thinking and

engagement

1

Accept

Revenue

Accountabilit

y

2

Financial

regimen –

partner with

your finance

exec

3

Revenue

metrics matter

the most

4

Strong data

management

policy and

practice

5

Use the right

technologies

6

Transparent

Comms

7


2018 Planning and MPM Checklist (page 1)

Category Stakeholders Description Benefits Organizational Readiness & Required Actions

Strategic Alignment CMO, CFO, CSO The most critical part of successful MPM. Cross functional departments accept their roles in sourcing, influencing and driving revenue

Teams are focused on shared revenue goals and roles for achieving success. Transparency also builds trust and teamwork.

Review 2017 Performance CMO Review the current year’s revenue performance. Only use vanity metrics as research footnotes to support overall data.

Provides insights on the starting point to compare performance in the new year.

Benchmark Funnel Performance CEO, CMO, CSO Deep data dive into reviewing the full funnel from Inquiry, MQL, SQL, Opportunity and Close. Benchmarks show performance at each stage and identify areas to optimize and improve in campaigns, channels, training, sales process consistency across reps.

Focus resources where they are most needed. Significant revenue lift can occur by improving sales process and deep funnel nurture campaigns.

2018 Revenue Goals CEO, CMO, CFO, CSO Marketing agrees to Sourced and Influenced Revenue

Cross organizational alignment and focused effort with revenue goals.


2018 Planning and MPM Checklist (page 2)Category Stakeholders Description Benefits Organizational Readiness

& Required Actions

2018 Campaign Strategy CMO Plan the campaigns that will source and influence revenue with full funnel marketing. 2017 performance metrics help guide the best areas to invest in and the best performing channels.

Full funnel marketing sources and accelerates revenue. Marketing isn’t just focused on lead generation. Sales can accelerate with deep funnel marketing campaigns.

Budget Planning – Invest for Success

CMO and CFO The financial model that shows where sourced revenue will come from.

A financial model puts the CMO and CFO on the same page to help plan for the best areas to invest or cut budgets.

Organizational Expectations CMO, CSO, C-Suite, Department Heads

Communicate where marketing is accountable and focused as well as areas not covered. Set the guardrails to prevent mission creep.

Reinforces alignment by setting expectations where marketing resources are focused for revenue success. Prevents the inevitable scope creep that often falls to marketing.

Data Management CMO Reliable measurements require accurate data.

Critical for effective MPM. Capture accurate data to provide reliable and credible insights

Systems, Tools, Process CMO A central system of record is the single source of truth. All technologies with relevant data must integrate with the SOR. MPM and attribution are essential to the mix.

MPM and attribution solutions aggregate the necessary data to identify sourced and influenced revenue as well as budget ROI.


Category Stakeholders Description Benefits Organizational Readiness & Required Actions

Standardized Reports CMO Monthly, quarterly, and annual reporting should focus on revenue metrics that matter..

Marketing spends too much generating monthly reports with metrics that don’t matter. All revenue stakeholders must agree to standardize of the critical funnel metrics. Rathole drill down exercises can be handled on a case-by-case basis.

Assess, Adapt, Optimize All – Execs and Team Leads Review the Big 5 KPIs for leading indicators to improve or pursue.

Successful modern marketing requires continual improvement. Encourage experimentation, testing, innovation.

Guide Future Performance CMO Where Marketing Performance Management delivers true value by guiding future revenue efforts in the most efficient and effective means possible.

Historical data on revenue performance helps guide where to invest budget resources in the right channels.

2018 Planning and MPM Checklist (page 3)


Wrap Up + Recap

• Questions?

• Feedback Survey


https://www.surveymonkey.com/r/BNB6XBK

Additional Resources


Heinz Marketing – Marketing Performance Management Research

BrightFunnel – The Definitive Guide to Multi-Touch Revenue Attribution

http://results.heinzmarketing.com/rs/966-VWE-480/images/2017-Marketing-Performance-Management-Report-HeinzMarketing.pdf?utm_campaign=mpmbf&utm_medium=pp&utm_source=wkshp

http://resources.brightfunnel.com/ebooks/definitive-guide-to-multi-touch-attribution