Measure Marketing's Influence on Revenue With Attribution Models

Measure Marketing’s Influence on Revenue With Attribution Models

2 The Pedowitz Group 2014 Confidential

Your Presenters

Kevin Joyce VP Marketing Strategy The Pedowitz Group

Cory Vander Jagt Director, Product Marketing

GoodData

What You Will Learn

§  Lay the foundation for scalable, reliable, repeatable revenue attribution

§  Understand the different types of revenue attribution models

§  Use your revenue attribution models to optimize Marketing investments

Strategic Partnership

§  Cloud based, open analytics platform

§  Analytics for Sales, Marketing and Social data

§  Full service Revenue Marketing Agency

§  Transforms Marketing from a cost to a revenue center

Revenue Marketing Journey Maturity Stages

Minimal Revenue Impact Revenue Maximized

§  Implemented Email platform

§  Tactical, one off emails, batch and blast

§  Cold calling following email tactics

§  Little to no alignment between Sales and Marketing

Lead Generation

§  Integrated full featured Marketing Automation and CRM – Agility and ownership

§  Defined Buyer Journey

§  Digital Body Language and nurture

§  Close alignment of Sales and Marketing

Demand Generation

§  Systems are optimized – Agility and ownership

§  People and processes are optimized

§  RPS – Repeatable, Predictable, Scalable Revenue impact from Marketing

§  Synergy with Sales

Revenue Marketing Traditional

§  Marketing focused on brand building and impressions

§  Make it pretty department - “Pens, mugs, and events”

§  Marketing is not a line of business

Metrics ¨  # of “leads” sent to Sales

¨  Cost per lead

Metrics ¨  Closed Loop Reporting

¨  Portfolio Funnel Mgmt.

Metrics ¨  ROI

¨  Forecasting

Metrics ¨  Measured on costs

¨  Measured on activities

Analytics Competency

Revenue Marketing Analytics Service

§  Cloud Based Marketing Business Intelligence Service

¨  Connectors For Marketo, Eloqua, Google Analytics, Facebook, Twitter, Salesforce and more..

¨  Out of the box - 12 dashboards and up to 55 Marketing and Sales reports

§  Monthly Engagement with Revenue Marketing Analyst

§  Revenue Marketing Analytics Assessment Workshop

§  Start reporting in a matter of weeks

9 The Pedowitz Group 2014 Confidential 9 The Pedowitz Group 2014 Confidential

What is Marketing Attribution?

B2B Marketing Attribution – Lead Source §  Pros:

¨  Had the advantage of at least indicating Marketing Sourced Leads

¨  Very easy to implement

§  Cons:

¨  Opportunities often attached to subsequent Account Contacts – “Sales Prospecting”

¨  Confusion as to the source: PPC Ad, or Gated Content, or Webinar

¨  Generally just used to link Marketing to NEW prospects

¨  Ignores the concept that Marketing sources Accounts, not just leads

¨  Vastly understates the INFLUENCE of Marketing on Revenue

§  Lead Source is not the same as “First Touch Attribution”

B2B Marketing Campaign Attribution – True ROI Calculate an ROI for every Marketing program

§  Pros

¨  Good relative measure of individual programs – correlation to success

§  Cons

¨  Requires accurate allocation and summation of all costs and revenues

¨  Requires setting an end date for gathering revenues and costs

¨  Ignores other influences on revenue success

¨  Can be many months or years before true ROI is known in B2B

Some firms attempt to measure “Return” in terms of SQLs, MQLs, or Opportunities

§  Shortens the period of time required to measure “Return”

Marketing Attribution Ideal – Marketing Influence

Buyer Journey

Make Decision Search Engines

Link to Chat

Receive Email

Research Service Value Select

Service

Research Products/ Vendors

Build Short List Receive

Value Gain

Confidence

Receive Newsletter

Sales Promotion

Explore Competitor

options Receive

Industry WP Receive

Newsletter

Receive Reward

Read Testimonials

Email Incentive

Acquisition Loyalty Consideration Retention Conversion

Search Websites Social Live Person Mobile Email @

Identify business

Paid Ads

Increase Services

Show all of the Marketing activity…

¨  With all of the contacts associated, with all of the revenue in a given quarter

Summarize it by activity type and when it happened:

¨  Weight the various Marketing activities - some more heavily (by time or type)

¨  Shows ALL Marketing influence on revenue

¨  Shows Marketing influence on new and existing customers

Marketing Attribution Ideal §  Cons:

1.  Connecting the dots between contacts, leads, campaigns and opportunities can be difficult

2.  Figuring out the right model to attribute revenue to campaigns and programs can be a daunting task

3.  Interpreting the results and deciding on the best course of action requires a Marketing analytics analyst

§  Con #1 is solved with effective Marketing BI solutions

§  aka GoodData/TPG Revenue Marketing Analytics Solution

§  Con #2 and #3 is something all firms have to grapple with

Poll Question

§  What is your primary mechanism for attributing Marketing to revenue?

1.  None

2.  Lead source

3.  Marketing Automation Analytics

4.  CRM Campaign Reporting

5.  Marketing Business Intelligence Platform

How to Get Started?

#1 Define Your Lead Funnel Stages and KPIs

Added Progressed Balance Avg. Age

351 70 15431 50 Days

35 34 17 2 days

32 37 127 14 days

16 17 35 2 days

11 10 70 56 days

5 - - -

2 2 129 65 days

1 - - -

Conversion

Lists Web Social Events Search

BDM Accepted Lead

Inquiry Re-Market

MA Qualified Lead (MAQL)

Opportunity

Sales BDM

Junk, Disqualified

#2 Connect Campaigns to Revenue

§  Utilize the Campaign and Contact Role in your CRM and synch data from Marketing System

§  Leverage Marketing BI system to connect the dots: Campaigns to Contacts to Accounts to Opportunities to Revenue

Types of Marketing Attribution

First Touch Revenue Attribution

sle&er Sign up

100% Download

0% A&en

0% Opportunity

§  100% revenue credit given to the first campaign of which a Lead/Contact was a "responded" member

§  Lead Source is similar, but not the same

First Touch Revenue Attribution Example

§  Top 10 highest-revenue generating campaigns by Campaign Type and Amount from the "First-Touch Campaign Attribution" perspective.

§  Business Rule: First campaign response must be within seven days of Lead/Contact created date

Last Touch Revenue Attribution

sle&er

Sign up

0% Download

100% Opportunity

§  100% revenue credit given to the last campaign of which a Lead/Contact was ever a "responded" member before being converted to an Opportunity

§  Simple, but suspect approach

Last Touch Revenue Attribution Example

§  Top 10 highest-revenue generating campaigns by Campaign Type and Amount from the "Last-Touch Campaign Attribution" perspective

§  The last campaign response must be within seven days prior to the Opportunity created date

Multi Touch – Even Weight Revenue Attribution

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Download Asset

33% Opportunity

§  Equally-credits all Marketing touches which the Lead/Contact was ever a "responded" member

§  Very fair, may overstate the value of some Marketing activities

§  Requires consideration of frequency and recency of some activities

Multi Touch – Even Weight Revenue Attribution

Influencing your Campaign and Content

Multi Touch – Custom Weighting

Opportunity

sle&er

10% Do

wnload Asset

§  Custom attribution weighting based on asset type, buying process or time decay

§  Requires additional setup and complexity for most marketers not using RMA

Multi Touch – Before Opportunity New

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33% Do

wnload Asset

33% Opportunity

§  Equally-credits all campaigns of which the Lead/Contact was ever a "responded" member before being converted to an Opportunity

§  Ignores Marketing influence once Sales is driving the opportunity

Multi Touch – After Opportunity

Download Asset

33% Opportunity

§  Equally-credits all campaigns of which the contact was ever a "responded" member only after the Opportunity was created

§  Isolated Marketing influence on the Sales pipeline

A Vision of the Future of Attribution

Program type

Buying Cycle

Summary

1.  Define your lead funnel stages and KPIs

2.  Connect campaigns to revenue in CRM and Marketing Automation

3.  Utilize the appropriate attribution model(s) for your buying process

4.  Configure your reporting system for the revenue attribution or utilize RMA solution

5.  Review on a quarterly basis and adjust the model(s) as needed

Questions or Comments?

Kevin Joyce VP Marketing Strategy

kevin@pedowitzgroup.com

Cory Vander Jagt Director, Product Marketing

cvj@gooddata.com

Learn More Follow Us

@revenuemarketer

@gooddata

Free Revenue Marketing Analytics Trial

bit.ly/GDTrial-Mktg

Get In Touch

sales@pedowitzgroup.com

Thank You!

Measure Marketing's Influence on Revenue With Attribution Models

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Transcript of Measure Marketing's Influence on Revenue With Attribution Models

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