7 Steps to Improve Marketing ROI

Lorel Marketing Group | 2013

•Overview• The Current State of Marketing Organizations

• Keys To Change The Current State of Marketing

• Barriers To Improvement

• How Successful Companies Overcome These Challenges

• Holding Your Marketing Team Accountable• The Current State of Your Marketing Organizations • Do you currently hold your marketing team accountable for revenue? • Do you involve your marketing team in the planning and setting of

business goals and objectives? • Keys To Change The Current State of Your Marketing • Do you clearly state defined expectations of your marketing team?

• Do you understand the metrics behind marketing initiatives? • Barriers To Improvement • Have you empowered your marketing team? • Does your marketing team have the tools they need to accomplish the

objectives?

The Current State

• The Current State: Marketing Team Accountability • 65% of marketers surveyed say CEOs and CFOs are demanding ROI to secure budgets.

• 79% indicate a greater need to measure, analyze, and report marketing effectiveness over last year.

• Despite this, only 20% of marketers surveyed said the tools and measurement efforts were not budgeted for.

• The Current State: Marketing Team Accountability

• The Current State of Marketing Organizations

• Marketing Metrics Are Not Part of Marketing Planning/Budgeting • Rarely Are Marketing Metrics Leveraged In Marketing Functions• Marketing Departments Lack Credibility; No Senior Level Support or Buy-In • Lack of Understanding of Marketing Tools & Systems

• Companies indicating highly effective and efficient marketing showed much greater strengths in:

• having data, facts, and insight to better guide marketing spending decisions (75% vs. 33%) • using good measurements (69% vs. 30%) • using customer analytics (65% vs. 31%) • having marketing operations processes to improve the business of marketing (64% vs. 29%)

• The Current State: Marketing Team Accountability• Data is a Priority… • 75% of marketers indicated that having data, facts and insights as paramount

when making better marketing decisions. • 69% of marketers also noted using good measurements in determining and

prioritizing marketing initiatives.

• The Current State: Marketing Team Accountability• Data is a Priority… • But Budgetary Support for Data is Limited.• Only 34% of marketers reported having internal marketing analysts dedicated to help assess marketing performance, but only 7% of their marketing budget was allocated to measurement and analytics • 32% reported 1% to 5% of their budget • 31% reported no budget support for analytics • 22% reported between 6% and 10%

Keys to Change

•Keys to Change: Understanding Marketing

• “There are two types of CEOs: Those who know that they don't understand marketing and those who don't know that they don't

understand marketing.” – Dr. Philip Kotler

• Dr. Philip Kotler - the S.C. Johnson & Son Distinguished Professor of International Marketing at the Northwestern University Kellogg Graduate School of Management in Chicago.

• Keys to Change: Understanding Marketing

• Link Marketing Programs to Business Objectives

• Define and Understand Data

• Connect data, technology and methodology

• Keys to Change: Understanding Marketing• Does Marketing Have Credibility Across The Company?• What CEOs Want From Marketing • Be prepared with financial analysis• Answers without marketing jargon • Evidence of initiative performance • Options & alternatives • Demonstrate predicted results

• Recommendations of what has the best financial return on marketing

• Keys to Change: Holding Your Marketing Team Accountable

• Ensure Marketing Metrics are Part of Marketing Planning

• Leverage Marketing Metrics in Marketing Functions

• Instill Marketing Department Credibility; Senior Level Support

• Provide Marketing with Tools & Systems

• Connect data through technology and methodology

Barriers to Improvement

• Barriers to Improvement

• Challenges Most Organizations Face With Their Marketing Team:

• Aligning marketing metrics with business objectives

• Empowering your marketing team within the Organization

• Balancing brand building & sales conversion

• Calculating marketing ROI, reporting & assets

• Accessing the right data & bridging data gaps

• Setting up the right capabilities with the marketing organization

• Developing processes and methodologies to assess and evaluate initiatives against goals

• Barriers to Improvement

• Challenges Most Marketing Teams Face:

• Access to data

• Availability of tools

• Limited processes or methodologies

• Lack of understanding of the metrics

• Inability to use the data to drive marketing decisions

• Inability to correlate the data to business objectives

Overcoming the Challenges

• #1 - Leverage Customer Data In Marketing Campaigns: The Difference is in the Conversion Rates

• * Results from researchers at Forrester, Jupiter, Amazon.com and Ovum who analyzed campaign performance

when analytics targeted certain consumers -- across multiple industries and channels.

• What Data Do You Need and Where is the Data? • Customers Provide Many Clues and Facts about what they want

• #2 - Customer Segmentation – The Right Offer, to the Right Person, at the Right Time

• Know the audience – “touch” fewer people, fewer times

• Collect the clues in a data warehouse

• Use the clues to make offers at the right time geared toward the individual’s need or interest

• Provide more relevant offers

• The difference is use of technology & analytics

• Shows up as differences in conversion rates and customer satisfaction

HIGHER Conversion rates: % of people who respond to the offer

HIGHER Customer satisfaction: % of people happy with the company and its products

• Source: Good vs. Bad Marketing:Analytics to the Rescue, Dr. Dave Schrader, Teradata, Washington, D.C., June 18, 2003

Example: How To Use Customer Segmentation Data:

• #3 - Behavior Marketing Is More Effective Than Demographics— Example: Finance Industry

• Example: Acquisition Program Based on Behavior

• Bank notices a customer behavior: a large deposit, a large withdrawal, a marriage, a drop in interest rates, a CD comes

due

• Based on the behavior, bank makes an appropriate offer, over the right channel, at the right time: consolidate accounts,

refinance a home, etc.

• Measure the results

• Best campaigns result in 25-60% conversion rates

• Customers are happier—“high-touch,” personalized banking services

• Source: Good vs. Bad Marketing:Analytics to the Rescue, Dr. Dave Schrader, Teradata, Washington, D.C., June 18, 2003 How To Hold Marketing Accountable For Revenues

Personalized “Touch” Segmentation

• How To Help Marketing Be Accountable• Require Marketing Metrics as Part of Marketing Planning

• Leverage Marketing Metrics in Marketing Functions

• Connect Data through Technology and Methodology

• Systems & Processes

•Establish a set of processes to ensure customer insights are leveraged to make marketing

investments

•Data driven marketing, leverage customer data

•Create better, more effective marketing campaigns

• How To Help Marketing To Be Accountable• Senior Level Buy-In

•True executive commitment to making it work.

•Instill Marketing Department Credibility; Senior Level Support.

• Strategic Alignment

•Link marketing activities to strategic objectives.

• Making Targeted Investments

•Hire the right people, with the right skills and give them access to the right technology and data.

• A Closing Remark:

• Marketing can and should be deemed as an investment -- like any core function in any company -- actively

collecting customer transactional information and using the data to make smart business decisions.

• Data + Tools + Process = Incremental Revenues

•Want to jump start your marketing strategy and programs?• Lorél Marketing Group can help you get started with a no-cost discovery meeting that can align your

goals with a vision for your success. Care to learn more? Contact us today at info@lorel.com

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