Communicating Marketing’s Impact and ROI to the C … Marketing’s Impact and ROI to the C-Suite...

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“…” Communicating Marketing’s Impact and ROI to the C-Suite Julie Schwartz, Senior Vice President Research and Thought Leadership, ITSMA 2015 Measuring and Communicating Marketing Impact Julie Schwartz Senior Vice President Research and Thought Leadership ITSMA Abbreviated Summary | July 2015 This abbreviated summary highlights some of the most significant findings of ITSMA’s Measuring and Communicating Marketing Impact. A more in-depth analysis can be found in the full report http ://www.itsma.com/research/itsma-online-survey-communicating-marketings-impact-roi-c-suite/

Transcript of Communicating Marketing’s Impact and ROI to the C … Marketing’s Impact and ROI to the C-Suite...

“…”

Communicating Marketing’s Impact and ROI to the C-Suite

Julie Schwartz, Senior Vice PresidentResearch and Thought Leadership, ITSMA

2015 Measuring and Communicating Marketing Impact

Julie SchwartzSenior Vice President Research and Thought LeadershipITSMA

Abbreviated Summary | July 2015

This abbreviated summary highlights some of the most significant findings of ITSMA’s Measuring and Communicating Marketing Impact. A more in-depth analysis can be found in the full report http://www.itsma.com/research/itsma-online-survey-communicating-marketings-impact-roi-c-suite/

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 2

What is most responsible for the

change in marketing context?

Marketing’s stature in the organization has changed dramatically

Marketing is a strategic function and a core part of the

executive leadership team

45%

Today(N=67)

10%Three Years Ago

(N=59)

“New marketing technologies

enable marketing to track and report

activity and outcomes”

“Recognition that buyer behavior has changed and

marketing needs to own pipeline”

“A change in leadership influenced the growth of the

marketing department beyond the singular function of

lead generation”

“Demand for all areas of business to show value; visibility of

analytics and ‘Big Data’ at the C-suite level”

“New CMO and realizing the importance of differentiation

and leverage that only marketing can provide for

the next phase of growthand staying relevant”

“A movement toward ROI-based marketing

or marketing that impacts the business. Not just

design/branding-based marketing”

Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 3

Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015 % of Respondents (N~66)

Despite having new marketing technologies and tools that enable us

to track and measure marketing activity like

never before,

of marketers still struggle to prove business impact.

64%

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 4

To build trust, start with data integrity and then go beyond the data: What is your story, who are you telling it to, and how?

Which types of data do your organization’s executives request most?

Customers Markets

Contacts Whom

Marketing is Nurturing

Sales-Accepted

LeadsMarketing Programs

The Competition

CEO

CFO/Finance

BU or Division leaders (P&L

owners)

Sales

Note: Multiple responses allowed. % of Respondents (N~54)Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015

High

Medium

Low

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 5

How do you know what YOUR executives want to hear?

Ask them!

What is the business strategy?

How do you want marketing to contribute to that strategy?

How will you evaluate our

contribution?

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 6

Marketers who communicate outcome-based data build trust among the C-suite

Marketing is a strategic function

Counting Effort

TrackingCosts

Counting Results

Measuring Efficiency

Reporting Outcomes

AnticipatingOutcomes

Forecasting Outcomes

• Articles/Blog Posts

• Datasheets Created

• Press Releases Written

• Events Produced

• Campaigns Launched

• Budget Category Expenditures

• Media Mentions

• Trade Show Leads

• WebsiteRegistrations

• Downloads

• New Contacts

• Click Through Rates

• Leads Generated

• Campaign ROI

• Cost per Lead

• Cost per Sale

• Program to Total Spend Ratio

• Program to People Ratio

• Market Share

• Customer Lifetime Value

• Conversion Rates

• Pipeline Contribution

• Total ContractValue

• Brand Awareness/Preference

• Share of Wallet

• Adoption Rates

• Customer Sat/Loyalty

• Rate of Growth to Market Growth Ratio

• Propensity to Purchase

• CustomerRetention/ Renewal

• Likelihood to Defect

• Marketing Mix Optimization

ACTIVITY OUTCOMESOutput-

Based Operational

Business Impact

Leading-Indicators

PredictiveActivity Metrics

Cost

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 7

Marketing’s ultimate objective is to build business value, not quarterly bookings

Your metrics framework

needs to balance three goals

Revenue/Contribution

to SalesRelationships

Reputation/Brand

Perception

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 8

Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015

Most marketers are measuring

ROI quarter-by-quarter;

they are measuring leads,not business outcomes

of marketers use 70% 57%

Focusing too much

is a mistake

on

to measure ROI

Number of Sales-Qualified

Leads

only track ROI over a period of

3 months or less

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 9

Linking marketing activity to business impact is a multiyear journey requiring process and behavior change

Build trust in marketing and marketing’s data Develop processes and supporting infrastructure to ensure data integrity

Implement a marketing metrics framework based on business outcomes

Use your data to tell a good story

Foster a culture of accountability Educate marketers on how they personally contribute to business goals

Set performance targets for every marketing program and campaign and measure against them

Create business value in addition to campaigns and leads Demand generation and the pipeline are important; but so are customer

lifetime value, brand equity, and propensity to defect

Take an experimental approach based on hypothesis testing and start building predictive models

To get executive leaders to embrace marketing as a key

driver of business performance:

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 10

Study Methodology

Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015

Participating Companies (partial list)

Amdocs Aranca Atos Autodesk Avanade Avaya Aviat

Networks Baufest Black & Veatch Capgemini CDW CGI Ciena Cisco Cognizant CPqD Cyient Limited

Datapipe Deloitte Diebold Dimension

Data ECI

Healthcare Partners

EMC EXTOL

International EY FIS Global Fujitsu Genpact Giffhorn HCL

Technologies

Hitachi Data Systems

HP IBM Juniper

Networks KPMG Netmagic

Solution Neudesic NIIT Tech Online

Business Systems

Persistent Systems

Polycom Protiviti

PwC Rolta Salesforce SBS Group Schneider

Electric ServiceSource SunGard Symantec Tektronix TeleTracking

Technologies UBM Tech Unisys VMware Xerox

Web-based Survey

Survey invitations were emailed during April 2015 to select senior marketing executives in the ITSMA community

67Senior marketers completed the survey

The Data Was Analyzed by:

Ability to Use Data to Measure and Communicate Marketing’s ImpactQualitative

Interviews

12Marketing leaders were interviewed by ITSMA

Back of the pack. We track marketing activity, but rely on anecdotal info to show impact

15

52

31

2

Average. We regularly collect and communicate marketing data

Above average. We use marketing data to optimize performance

Leading edge. We directly tie marketing activity to business results

Data Savvy

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 11

52%48%

64%36%

68%

15%

12%

5%

8 9 10 96

22

12

24

Lessthan

$50M

$50–99M

$100–249M

$250–499M

$500–999M

$1–4.9B

$5–9.9B

$10B orMore

Respondent DemographicsJob Title

% of Respondents (N=67)Source: ITSMA Survey: Measuring and Communicating Marketing Impact, April 2015

Size of Solutions Business

Type of Company

PhysicalLocation

Industry

Marketing director/ manager

Marketing executive

(CMO, SVP, VP, AVP)

Both products

and services

Primarily services

(10% or less revenue from

products)

25

16

15

13

13

9

8Other technology hardware systems and solutions

Outsourcing (technology/business process)

Telecommunications and networksystems/solutions

Computer systems and solutions

Software solutions

Non-IT professional services/consulting/businessservices

IT professional services/consulting

NorthAmerica

Europe

Asia

South or Central America

©ITSMA 2015 Survey: Measuring and Communicating Marketing Impact | Abbreviated Summary | SV4597AS. All rights reserved. Not for reproduction or redistribution without permission. | 12

Want to learn more? Here’s what is included in the full study

For More InformationJulie SchwartzSenior Vice PresidentResearch and Thought [email protected]+1-781-862-8500, Ext. 112

Slide

Executive Summary 3

Methodology and Respondent Demographics 25

Detailed Findings 38

Business and Marketing Performance 38

Using Marketing Data 50

Communicating Marketing’s Impact 64

Marketing Dashboards 76

Marketing ROI 89