Aquent CRE8 Measurement M Becker

Measuring Marketing Results

Mayer G. BeckerNational Practice DirectorMarketSphere Consulting [email protected](312) 357-4405

CRE8 Conference 2008 CRE8Summit.com | Presented by AGI agitraining.com

CRE8 Conference 2008 | CRE8Summit.comJanuary 24, 2008 © 2007 MarketSphere Consulting LLC 2

Welcome!

Mayer G. Becker25-year career in marketingDirector of Marketing – American Bar AssociationDirector US Marketing Communications, Computer Associates Inc.Vice President, Hill & Knowlton, Inc.Director, Corporate Marketing - Tribune Company (In-house CRM & agency)VP Marketing – Telenisus Corp.Director of Marketing Communications (Global), United Airlines Inc.National Practice Director, Enterprise Marketing Management, MarketSphere Consulting LLCChicago AMA Chapter Member, Voting Member, DMA


MarketSphere EMM Practice

The MarketSphere Enterprise Marketing Management (EMM) Practice addresses the needs of the Chief Marketing Officer (CMO) and the marketing organization.

Our unique transformational approach combines process and organizational change with adoption of new marketing automation technologies that drive customer, financial and operational insights, more effective marketing programs and a higher return on Marketing Investment (ROMI).

MarketSphere services include vision and roadmap development together with software selection, marketing process improvement, software implementation and product training for the Aprimo® and Unica® EMM product suites.

CRE8 Conference 2008 | CRE8Summit.com

Agenda

Taking your pulse – what’s important to you?Framing the challenge for marketingWhy talk measurement?3 Dimensions of Marketing MeasurementAn introduction to Marketing OperationsEnterprise Marketing ManagementResources to learn moreQ & A


A vignette from the past

Mutli-national software company with 375 products/16 product linesProblem: Marketing materials needed to support field sales activities were almost never on-time, direct mail was dropping late, there was “chaos” and not order in the MarCom area as priorities changed hourly. Late fees were the routine and staff was stressed.

Challenge: Establish a process that ensured all marketing materials are created and distributed on time to meet marketing objectives.

SolutionEstablished standards and key milestones for each type of activityEstablished a quarterly planning process – forward looking 4 quarters (2/2)Built a home-grown Marketing Ops application that organized projects and provided reports and status to all marketing stakeholders (published weekly on Monday)Enlisted EVP Marketing to support change


Problem-solving results

HelpPeopleChange

ApplyTechnology

ImproveProcess

4 Qtr Planning Horizon

Integrated Calendar

Standards

Management tool to track projects

Reports based on Milestones

Weekly Report & Red Flag Status

EVP Support

Deliver as Promised

Result: 90-day changeover to a full plan, delivery of 89% of all projects on time within 12-months (versus 50%), reduced rush charges $900K, earned new revenue of $10MM from direct mail.


Framing the challenge for marketingInternal issues

CEO urges marketing to lead innovation and growthCFO wants visibility into marketing performance; more accountability; Sarbanes-OxleyDisconnect between the languages of finance and marketingNew Chief Marketing Officer (CMO) every 24 months. New CEO, CFOFlat or reduced budgets and headcount in marketing (and elsewhere)Staff turnover

External issues• Consumers have more choice• Faster time-to-market• 24x7 markets• Traditional competitors have

become more effective marketers• New competitors from internet

sites• Manage and integrate proliferating

communication channels• Agencies as project resources

versus long-term AOR• Agency staff turnover• Short-term, quarterly financial

reporting for public companies


Industry snapshot

The Marketing function is the last major business function to be addressed by technology, beginning with CRM in the late 1990’sSince 2003 global companies have been re-defining their marketing operations:

Identify more accurately and conclusively the return on marketing investment at all levels of detail, to demonstrate valueGather and analyze significant amounts of customer data, to enable greater insight into customersGather and analyze operational and financial data, to improve the effectiveness of programs while driving down the cost of marketingPreserve and protect marketing intellectual property, to insure compliance, facilitate reusability and preserve corporate memory

The result is the adoption of marketing governance (investment portfolio management), creation of a PMO and implementation of Marketing Resources Management software within the marketing department.


Forrester Research

“Marketers should buck this trend [CMO turnover] by establishing a contract with the CEO, in writing, that outlines success metrics and targets for the department that are clearly aligned with corporate business goals. Marketers should reach out and partnerwith finance to construct the contract and enlist IT to build dashboards for tracking progress towards goals. By building executive credibility, marketing stands to gain additional budget dollars and executive support. A financial services CMO tells us: "Our tests proved that budget was sustained and increased by adding transparency and accurate metrics."

Peter Kim, Forrester Research, March 9, 2007


Ancient adage

“If it can be measured, it can be managed.Quote of Unknown Origin, 20th Century?


3 dimensions of marketing measurement

Customer

Financial

Operational

Measures customer performance against established targets

Measures financial performance against established targets

Measures operational performance against established targets



Customer

Financial

Operational

Measures customer performance against established targets:

• Customer lifetime value

• Intent to re-purchase

• Customer satisfaction quotient

• Average invoice or revenue per sales ticket

• Number of visits or purchases/time period

• Churn (especially trend)

• Net new customers

• Cost per acquisition or retained customer

• Brand recognition



Customer

Financial

Operational

Measures financial performance against established targets:

• Financial measures; “budget to actual”

• Brand asset value

• Customer financial measures; lifetime value, cost of acquisition, cost of retention

• Return on Marketing Investment (ROMI)

• Cost per lead, cost per sale

• Gross and net profit margins



Customer

Financial

Operational

Measures operational performance against established targets:

• Number of projects

• Projects on time/within X days

• Staff hours utilized; agency hours

• Ratio of staff to freelance hours

• Agency satisfaction scores

• Vendor satisfaction scores

• Performance against annual / quarterly objectives


How to approach measurement

Decide what to measure, and why it is importantEstablish a baseline and “key performance indicators” (kpi’s)Put into place data collection systemsCollect the dataAnalyze and understand the information, develop insights and circulate the resultsTake action (challenge, remediate, or celebrate!)

And most importantly, integrate measurement goals into performance plans


Marketing measurement overview


Marketing as “Operations”

Operations is often overlooked as an integral part of marketingMarketers are skilled brand builders, product developers and managers, creative artists and writers and campaign managers, but not necessarily “supply chain” or operations expertsMarketing IS a supply chainTraditionally marketers are not trained in professional project management

Marketing Communications, Marketing Services or agencies often serveas the de-facto project managerCalendars and projects are not integrated into a single, comprehensiveand holistic view of marketing activities

Software applications specific to marketing management have been available for only a few years

Status is correct until one minute after you ask for it.“Why would I need automation. I have it all in my head!”


The 5th Role of Marketing

BrandBrand

RevenueRevenue Voice of theCustomer

Voice of theCustomer

Product &InnovationProduct &Innovation

MarketingOperationsMarketingOperations


The Marketing Operations Function


• Establish, manage and report on the linkage of objectives with results

What should Marketing Operations do?


• Establish, manage and report on the linkage of objectives with results

• Run the marketing “business” (Project Management Office)

• Manage and optimize resources (Marketing Governance)

• Make it easy for everyone else to get their jobs done!

What should Marketing Operations do?


The Marketing Operations Function

Most commonly in-sourced to respective departments


Marketing Operations

Marketing Planning/Project Management OfficeCreate and monitor the annual Marketing PlanCreate and monitor the integrated Marketing CalendarWork with Brand, Product/Innovation, Voice of the Customer and Life Cycle Marketing to translate corporate goals into action plansHold quarterly reviews in conjunction with the CMOMonitor and publish reports and dashboards that combine customer, operational and financial metrics and Key Performance IndicatorsKey Technologies: Marketing Resources Management (MRM), Marketing Performance Management (MPM)Measurement: On-time and on-budget performance of action plans in conjunction with assigned managers

MarketingPlanning/PMO


High-level workflow at a major corporation



Budget and FinanceManage and control the marketing budgetMonitor and report financial and operational metricsTranslate “finance speak” into “marketing speak”Assist Marketing Planning with mapping of corporate objectives to budgets, and resultsRecommend to CMO the optimal allocation of marketing dollarsProvide Sarbanes-Oxley oversightMeasurement: performance against plan(s), increased Y-O-Y ROMI

Budget &Finance



Shared ServicesManage marketing services

Graphic arts and writingWeb and email operationsMarketing research & analyticsTraffic and production management

Manages day-to-day relationship with Agencies of RecordManage or coordinate with other marketing-related functions like Customer Service, Call Centers, or Fulfillment CentersMaintain labor standards and hire the optimal mix of staff, freelance and agency resourcesMaintain service level standards and enforce brand consistencyMeasurement: reduce cost of marketing while improving service delivery to other marketing units

SharedServices


Marketing Automation Ecosystem

COMPANY

SALES MARKETING FINANCE

Lifecycle MarketingDemand Management

Customer Service

MarketingCommunicationsMarketing Svcs

Sales OperationsMPM/

Analytics &Research

Brand/ProductManagement

CompanyWebsite

MarketingData Mart

AnalyticTools

CompanyIntranet/Extranet

KPIDashboards

Procurement------------

Accounting

Entit

yFu

nctio

nSy

stem

CRM CampaignMgmt **

Optionally, MOM could connect directly to an ERP system for replenishment of packaging & print materials

(i.e., user manuals)

SFADatabase

SalesEnablement

LegendCRM: Customer Relationship MarketingERP: Enterprise Resource PlanningKPI: Key Performance IndicatorsMOM: Marketing Operations ManagementSFA: Sales Force Automation

VENDORSAGENCIES

Knowledge ManagementRepository

Content ManagementRepository

Corp. CommPR

PR/MediaManagementApplication

DigitalAssetMgmt

MarketingOperations

Mgmt

MARCOM Self-Service

EMPLOYEES

CorporateInfo Systems

Channel &PartnerMgmt **

CUSTOMERS

© 2007 MarketSphere Consulting LLC

Rented Lists/External Sources

**Note: Companies operating Partner & Channel Management programs use PRM solutions.

Ver 2.2


Example of a Solution Topology

User Portal

Connectivity

Administration & Reporting Infrastructure

Marketing System

of Record

Digital Asset Management

Financials

Ariba

_Business Units_Corporate Marketing_Agencies/Suppliers

_Central Repository of Marketing Charters_Documentation of Approvals_Financial Information_Creative, Media and Project Briefs_Integrated Calendars & Project Status_Creative Materials (bridge to DAM) _Workflow rules** Customer Contact Rules and Event Triggers (later)

Marketing Campaign Planning

MarketingBudgets &Forecasts-----------

Financial Information

IntegratedMarketing Calendar

Offer & CampaignWorkflow

MarketingCampaignExecution(Future)

3rd Party Vendor(Instructions Only)


EMM Functionality

Marketing ResourceManagement

Campaign Management, Customer Analytics& Modeling

Email, Web and Website Analytics

Digital Fulfillment, Digital Asset Management

Marketing ROI, Key Performance Indicators & Dashboards

Marketing Planning PortalPlanningCalendarWorkflowJob StarterFinancials*Procurement & RFP*

Profiling & SegmentationCampaign Mgmt. (Audience Selection) for direct mail, e-mail, telemarketing, direct salesLead ManagementEvent-based MarketingPredictive ModelingCRM/Marketing data mart SAS Analytics add-on

Email ProductionWeb FormsWeb Content ManagementWeb Analytics

Digital Asset ManagementWorkflowJob StarterProcurement & RFPCollateral Customization &Self-Publishing*

Analytical data martHyperion, Cognos, or Business ObjectsCustom-built marketing information dashboardsReporting Tools

Marketing System of Record


Expected outcomes

Successful linkage between company strategy and marketing tacticsReduction in unaligned projectsBetter insight into marketing’s return on investment and performance across product lines, markets and time periodsForward visibility into an integrated marketing calendar and future resources needs/requirements“New money” found from reduced cost of re-work and consolidation of vendorsHigher work-place satisfaction and growth opportunities for staff

HelpPeopleChange

ApplyTechnology

ImproveProcess

Vision &Roadmap

CRE8 Conference 2008 | CRE8Summit.com31

Suggestions

Educate yourself and your peersLearn about available software applications

AprimoUnicaOthers (mid-market or departmental)

Learn more about marketing measurementIf you see an opportunity to improve operations:

Find a corporate objective that would benefit directly from a more operationally effective marketing departmentEngage an executive sponsorPartner early with IT and FinanceDesign a roadmap detailing the steps to be takenInclude programs for change management

Have patience, a lot of patience


Resources

For more information, contact:Aquent Consulting www.aquent.comMarketSphere emm.marketsphere.comDestination CRM (Marketing Automation) www.destinationcrm.comHenry Stewart Conference on Marketing Operationswww.damusers.comIan Michaels / Aberdeen Group www.aberdeen.comSuresh Vittal / Forrester Research www.forrester.comKim Collins, PhD. / Gartner Group www.gartner.comGary Katz / Marketing Operations Partners www.mopartners.comPat LaPointe / MarketingNPV www.marketingnpv.comAprimo Inc. www.aprimo.comUnica Corp. www.unica.com


Let’s hear your questions and comments!

Q & A


Thanks for attending today’s

session!

Wrap Up

For a copy of the PowerPoint slides: [email protected]

Aquent CRE8 Measurement M Becker

Business

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