Transcript Marketo Presentation

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What You Need to Know About Better Dashboards

Four Realties That Change Marketing Reporting

Two Rules of Better Marketing Measurement

Where to Start: KPIs, Metrics and Flow

What Companies are Measuring Now

Where Measurement is Going Next
Reality 1: Marketing Has More Roles Than Ever
SiriusPerspective: Waterfall-long alignment is driven by planning
and execution tied to five critical task families.
1
SEED
The use of traditional and
social media to set the stage
for demand to be created.
Inquiries
3
Marketing Qualified
Leads (MQLs)
2
CREATE
The generation of “original”
demand, with a focus on
quality vs. quantity.
4
ACCELERATE
Efforts geared to help sales
move deals more quickly
through the pipeline.
ENABLE
Helping reps move
marketing-created demand,
as well as to source their
own demand.
Sales Accepted
Leads
Sales Qualified
Leads (SQLs)
5
NURTURE
Care and feeding of prospects
that have fallen out of the
waterfall.
Closed/Won
Business
Source: SiriusDecisions
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Reality 2: Different Sales Models, Different Marketing
SiriusPerspective: What marketing needs to deliver changes based
on sales tier, and so do the KPIs and metrics to track results.
ENABLE
ACCELERATE
SEED
CREATE
ENABLE
NURTURE
SEED
TIER ONE
TIER TWO
Strategic
Enterprise/Territory
ACCELERATE
CREATE
SEED
ENABLE
TIER THREE
Small/Medium Business
NURTURE
Source: SiriusDecisions
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Reality 3: Most Inquiries Arrive Via Inbound Channels
SiriusPerspective: The reality is that prospects find you when they’re
ready; inbound marketing needs a bigger slice of most plans
100%
90%
80%
70%
55%
58%
71%
60%
Web
50%
Direct Mail
40%
19%
30%
Email
Events
21%
14%
20%
11%
10%
15%
12%
6%
9%
2009
2010
2015
9%
0%
Source: SiriusDecisions
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Reality 4: Tactics Are Valued Differently By Phase
SiriusPerspective: It has never been more important to understand
how buyers buy and what they prefer to drive marketing focus
Buyer-Preferred Tactics by Buying Phase
Source: SiriusDecisions
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Result: BtoB Reporting Must Evolve
SiriusPerspective: Reporting needs an overhaul to support the
expanded role and changing tactic mix for b-to-b marketers
Buyer
Control and
Preference
for Multiple
Tactics
More Roles
for
Marketing
Plan,
Execute
and
Measure
Differently
Rule #1: Never Confuse Activity with Results
SiriusPerspective: Marketing reports must answer the question “what
do they do for us?” in terms sales and management understand
What Marketing Reports:
“We held 6 webcasts,
2 tradeshows, did 5 press
releases and sent 10
What Management Wonders:
email campaigns last
quarter.”
“What revenue did that
bring in?”
Source: SiriusDecisions
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Don’t Link Individual Tactics to Closed Deals
SiriusPerspective: Don’t attribute wins to a single touch when it takes
on average three to six touches to qualify a lead, and more to close.
Single Tactic Attribution
Multi-Touch Attribution
First/Last
Touch
MQL
Tele
Web/
Inbound
Other
Outbound
MQL
Close
Source: SiriusDecisions
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Rule #2: Measure Numbers that Matter
SiriusPerspective: Understand the difference between KPIs and
metrics and what they tell you about marketing impact
Metric: A measurement system that quantifies a
trend. Metrics are used to diagnose causes, explain
results, and project future events and likely outcomes.
KPI: Key performance indicators are measurements
that indicate the health of the business and are
centered around aggregate growth, costs, market
share and profit.
Source: SiriusDecisions Inc
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Choose the right measurements for your business
SiriusPerspective: Take on the marketing measurements that will
have an impact and are achievable.
Measurement Selection Criteria
Data Source

What business
decisions will you
make with the
measurement?

Can you identify the
data source?

What is the quality of
the data?

Who is the audience?
Data Quality
Business
Decision
Ownership
Questions to Answer
Audience

Who will “own” the
data?
Source: SiriusDecisions
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Where to Start: Four KPIs Summarize Marketing Impact
Average*
SiriusPerspective: Net
out marketing’s
effective
To reflect
changes incontribution
marketing’sand
charter,
its use
of
budget with
four
benchmarkable
measurment
will
take
a broader lookKPIs.
at investment and results.
Marketing
Sourced Pipeline
Marketing
Influenced Pipeline
Investment-toPipeline
Investment-toRevenue
% of sales
pipeline uniquely
created by
marketing
% of sales
pipeline touched
by marketing
Average cost of
demand creation
of the sales
pipeline
Average revenue
generated from $1
invested in
demand creation
1% to 4%
$5 to
$20+
10% to
50%
30% to 82%
*Cross-industry averages for b-to-b companies
Source: SiriusDecisions
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Where to Start: Six Metrics Diagnose Opportunity
SiriusPerspective: Expand
on KPIs withcontribution
six metrics and
that effective
break
Net out Marketing’s
use
marketing
demand
ceration contribution
of buget with
four benchmarkable
KPIs. into component parts.
Inquiries
Raw
response or
hand raiser
25%+
2-5%
Average*
Database
% database
with bad/
incomplete
records
Marketing
Qualified
Leads
(MQLs)
Lead ready
for receiving
function to
work
Lead
accepted by
receiving
function
Lead that is
opportunity in
pipeline
4% to
8%
45% to
75%
50% to
60%
Sales
Accepted
Leads
(SALs)
Sales
Qualified
Leads
(SQLs)
SQL-toClose
Leads that
have closed
20% to
30%
*Cross-industry averages for b-to-b companies
Source: SiriusDecisions
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What B-to-B Companies Are Measuring Now
SiriusPerspective: Though many metrics are counted, those rated
most valuable are related to waterfall results.
Overall
Status
• ROI
• Market
share
• Customer
sat/loyalty
• Views by
segment
and geo
• Marketing
spend vs.
budget
Demand
Creation
• Marketing
sourced
demand
• Marketing
influence
• Waterfall
metrics
• Buying cycle
length
• Cost per
lead
Reputation
• Web
analytics
• Analyst
positioning
• PR/AR
activity
• Event
activity
Marketing
Operations
• Database
growth
• Shared
services
utilization
• Stakeholder
satisfaction
Source: SiriusDecisions
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Effective Dashboard Structure: Information Flow
SiriusPerspective: The best reports and dashboards select the right
measures by audience, then show and tell the story clearly.
Executive Summary
Reputation KPIs and Metrics (Seed)
Demand Creation KPIs and Metrics (Create and Nurture)
Sales Enablement KPIs and Metrics (Enable)
Marketing Operations KPIs and Metrics (Operate)
Source: SiriusDecisions
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Where We’re Headed: Marketing Influence and ROI
SiriusPerspective: To reflect changes in marketing’s charter, its
measurement will take a broader look at investment and results.
Source: SiriusDecisions
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Marketing Influence: What to Track
SiriusPerspective: Measuring overall marketing influence relies on
associating tactics with contacts and opportunities
Response
Participation
Response
Database
Growth
Buying
Cycle
Presence
% of Pipeline
Touched
Marketing
Tactic
Cadence for
closed deals
# of touches
Results
*for marketing touched deals
Sales Cycle
Length
Sales Phase
Duration
Revenue
Cost per Lead
ASP/Deal Size
Source: SiriusDecisions
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Summary

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Today
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Review metrics and KPIs to be sure they’re the right ones

Make sure dashboard is logically organized
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Set goals for updated measurement
In Three Months
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Map marketing tactics to the buyer’s journey, including the
parts where sales is involved
Monitor impact
In Twelve Months
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Use full year of new metrics to benchmark progress
Revisit allocation of marketing focus to reflect sources of
impact
Source: SiriusDecisions
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Contact Us
Megan Heuer, Service Director
Marketing Operations Strategies
[email protected]
(203) 665-4022
Follow Megan and SiriusDecisions:
http://twitter.com/megheuer
http://twitter.com/siriusdecisions
© 2010 Marketo, Inc.
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