Raab Winning The Marketing Measurement Marathon

Winning the Marketing Measurement Marathon: a Step-by-

Step Approach David M. Raab, Principal

Raab Associates, [email protected]

October 14, 2010

Copyright 2010 Raab Associates Inc. www.raabassociatesinc.com

Pressures on Marketers

new media: more choicesnew buying process: more tasksnew technology: more capacitynew expectations: more pressure

RESULT: greater need for measurement


Measurement is Important

Most Important Concepts: 3 Year Trendsource: Anderson Analytics, 2010 Marketing Trends Report


Measurement is important, but… …we measure the wrong things

What Marketing Is Measuringsource: Visionedge Marketing, 2010 Marketing Performance Measurement and Management


Measurement is important, but…

…we don’t get any better at it

Does your firm calculate marketing profitability, ROI (return on investment) or a similar financial measure to assess marketing effectiveness? (n = 303, 326, 226)

2008 2009 2010

Yes, we calculate ROI, net present value (NPV) or other profitability metrics for at least some of our marketing campaigns / investments

26% 24% 27%

Somewhat, we calculate some financial metrics such as cost per lead and cost per sale but not profitability metrics such as ROI and NPV.

34% 42% 43%

No, we use traditional marketing metrics but not financial metrics. 40% 34% 30%

Use of ROI Metrics to Assess Marketing Effectivenesssource: Lenskold Group, 2010 Lead Generation Marketing ROI Study


Measurement is important, but…

…we spend our money elsewhere

Planned Investments in Key Marketing Initiativessource: Accenture Marketing Transformation, Onward and Up (2010)


The problem is…everything

Barriers to Improvementsource: CMG Partners Chadwick Martin Bailey, The Marketing Performance Advantage 2009


Measurement Maturity Model

1. count response2. show impact3. understand process4. optimize results5. show strategic alignment


Marketers Need an

Integrated Measurement System


System Goals

show aggregate value from marketingshow incremental value by program

value = revenue, not leads


Purchase Stages

anonymous

known

interested

qualified

sales ready

opportunity

proposal

sale


Stage-Based Measurement

prospect email 60%

landing page 20%

registration page 20%

white paper 100%

Webinar 100%

demo 70%

pricing page 30%

forum query 100%

clients page 100%

anonymous

known

interested

qualified

sales ready

opportunity

proposal

sale


Delivery Requirements: Data


Delivery Requirements: Stage Definitions


Delivery Requirements: Database


Delivery Requirements: Projections


Delivery Requirements: Testing


System Evaluation Checklist

already covered:data qualitystage discovery, rules, prebuilt flowsanalytical databaseprojections, optimization and simulationtesting and interactions

also:integrate with source data back-fill historical dataplans, costs, scenariosalerts for over/under performance vs. history, vs. plan, vs. recentad hoc segmentation & data mining


Critical Metrics

goal metricshow value of marketing cohort ROI

measure program ROI incremental ROI

understand stage results stage statistics

forecast revenue by period

revenue projections


What Next?

Make a commitment

Follow the maturity model:

measure response: check your data measure acquisition: need simple system measure nurture: need stage-based system improve results: need testing and optimization


Summary

Better measurement is essentialAdvanced measurement requires stagesSystems are increasingly availableBetter measurement is essential


Thank You!David M. Raab

[email protected]


Raab Winning The Marketing Measurement Marathon

Business

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