A Dashboard Doesn't Drive Itself - Creating a Marketing Dashboard with Metrics that Matter
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Transcript of A Dashboard Doesn't Drive Itself - Creating a Marketing Dashboard with Metrics that Matter
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What You Need to Know About Better Dashboards
Four Realties That Change Marketing Reporting
Two Rules of Better Marketing Measurement
Where to Start: KPIs, Metrics and Flow
What Companies are Measuring Now
Where Measurement is Going Next
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Reality 1: Marketing Has More Roles Than Ever
SiriusPerspective: Waterfall-long alignment is driven by planning
and execution tied to five critical task families.
Inquiries
Marketing Qualified
Leads (MQLs)
Sales Accepted
Leads
Sales Qualified
Leads (SQLs)
Closed/Won
Business
SEED
The use of traditional and
social media to set the stage
for demand to be created.
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ACCELERATE
Efforts geared to help sales
move deals more quickly
through the pipeline.
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ENABLE
Helping reps move
marketing-created demand,
as well as to source their
own demand.
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CREATE
The generation of “original”
demand, with a focus on
quality vs. quantity.
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NURTURE
Care and feeding of prospects
that have fallen out of the
waterfall.
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Source: SiriusDecisions
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Reality 2: Different Sales Models, Different Marketing
SiriusPerspective: What marketing needs to deliver changes based
on sales tier, and so do the KPIs and metrics to track results.
Source: SiriusDecisions
SEEDACCELERATE
ENABLE
Strategic
Enterprise/Territory
Small/Medium BusinessTIER THREE
CREATE
NURTURE
SEED
ENABLE
NURTURE
CREATESEED
ACCELERATE
ENABLE
TIER ONE
TIER TWO
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Reality 3: Most Inquiries Arrive Via Inbound Channels
SiriusPerspective: The reality is that prospects find you when they’re
ready; inbound marketing needs a bigger slice of most plans
Source: SiriusDecisions
15% 12% 9%
11%9%
6%
19%21%
14%
55% 58%71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2009 2010 2015
Web
Direct Mail
Events
Reality 4: Tactics Are Valued Differently By Phase
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SiriusPerspective: It has never been more important to understand
how buyers buy and what they prefer to drive marketing focus
Source: SiriusDecisions
Buyer-Preferred Tactics by Buying Phase
Result: BtoB Reporting Must Evolve
SiriusPerspective: Reporting needs an overhaul to support the
expanded role and changing tactic mix for b-to-b marketers
Buyer Control and Preference for Multiple
Tactics
More Roles for
Marketing
Plan, Execute
and Measure
Differently
Rule #1: Never Confuse Activity with Results
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SiriusPerspective: Marketing reports must answer the question “what
do they do for us?” in terms sales and management understand
What Marketing Reports:
“We held 6 webcasts,
2 tradeshows, did 5 press
releases and sent 10
email campaigns last
quarter.”
What Management Wonders:
“What revenue did that
bring in?”
Source: SiriusDecisions
Don’t Link Individual Tactics to Closed Deals
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SiriusPerspective: Don’t attribute wins to a single touch when it takes
on average three to six touches to qualify a lead, and more to close.
MQL
Web/
Inbound
Tele
Other Outbound
First/Last Touch
MQL
Close
Single Tactic Attribution Multi-Touch Attribution
Source: SiriusDecisions
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Rule #2: Measure Numbers that Matter
Metric: A measurement system that quantifies a
trend. Metrics are used to diagnose causes, explain
results, and project future events and likely outcomes.
KPI: Key performance indicators are measurements
that indicate the health of the business and are
centered around aggregate growth, costs, market
share and profit.
Source: SiriusDecisions Inc
SiriusPerspective: Understand the difference between KPIs and
metrics and what they tell you about marketing impact
Choose the right measurements for your business
SiriusPerspective: Take on the marketing measurements that will
have an impact and are achievable.
Data Source Data Quality
Ownership Audience
Business Decision
Measurement Selection Criteria
What business
decisions will you
make with the
measurement?
Can you identify the
data source?
What is the quality of
the data?
Who is the audience?
Who will “own” the
data?
Questions to Answer
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Source: SiriusDecisions
Where to Start: Four KPIs Summarize Marketing Impact
Marketing Sourced Pipeline
% of sales pipeline uniquely
created by marketing
10% to
50%
Marketing Influenced Pipeline
% of sales pipeline touched
by marketing
30% to 82%
Investment-to-Pipeline
Average cost of demand creation
of the sales pipeline
1% to 4%
Investment-to-Revenue
Average revenue generated from $1
invested in demand creation
$5 to
$20+
Avera
ge
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*Cross-industry averages for b-to-b companies
SiriusPerspective: To reflect changes in marketing’s charter, its
measurment will take a broader look at investment and results.
SiriusPerspective: Net out marketing’s contribution and effective use
of budget with four benchmarkable KPIs.
Source: SiriusDecisions
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Where to Start: Six Metrics Diagnose Opportunity
Database
% database with bad/
incomplete records
25%+
Inquiries Raw
response or hand raiser
2-5%
Marketing Qualified
Leads (MQLs)
Lead ready for receiving function to
work
4% to 8%
Sales Accepted
Leads(SALs)
Lead accepted by
receiving function
45% to 75%
Sales Qualified
Leads(SQLs)
Lead that is opportunity in
pipeline
50% to 60%
SQL-to-Close
Leads that have closed
20% to 30%
SiriusPerspective: Net out Marketing’s contribution and effective use
of buget with four benchmarkable KPIs.
SiriusPerspective: Expand on KPIs with six metrics that break
marketing demand ceration contribution into component parts.
*Cross-industry averages for b-to-b companies
Source: SiriusDecisions
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Avera
ge
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What B-to-B Companies Are Measuring Now
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SiriusPerspective: Though many metrics are counted, those rated
most valuable are related to waterfall results.
Overall Status
• ROI
• Market share
• Customer sat/loyalty
• Views by segment and geo
• Marketing spend vs. budget
Demand Creation
• Marketing sourced demand
• Marketing influence
• Waterfall metrics
• Buying cycle length
• Cost per lead
Reputation
• Web analytics
• Analyst positioning
• PR/AR activity
• Event activity
Marketing Operations
• Database growth
• Shared services utilization
• Stakeholder satisfaction
Source: SiriusDecisions
Effective Dashboard Structure: Information Flow
Marketing Operations KPIs and Metrics (Operate)
Sales Enablement KPIs and Metrics (Enable)
Demand Creation KPIs and Metrics (Create and Nurture)
Reputation KPIs and Metrics (Seed)
Executive Summary
SiriusPerspective: The best reports and dashboards select the right
measures by audience, then show and tell the story clearly.
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Source: SiriusDecisions
Where We’re Headed: Marketing Influence and ROI
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SiriusPerspective: To reflect changes in marketing’s charter, its
measurement will take a broader look at investment and results.
Source: SiriusDecisions
Marketing Influence: What to Track
SiriusPerspective: Measuring overall marketing influence relies on
associating tactics with contacts and opportunities
ResultsBuying Cycle
PresenceResponse
Participation
Response
Database Growth
% of Pipeline Touched
Marketing Tactic Cadence for closed deals
# of touches
Sales Cycle Length
Sales Phase Duration
Revenue
Cost per Lead
ASP/Deal Size
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Source: SiriusDecisions
*for marketing touched deals
Summary
Today
Review metrics and KPIs to be sure they’re the right ones
Make sure dashboard is logically organized
Set goals for updated measurement
In Three Months
Map marketing tactics to the buyer’s journey, including the
parts where sales is involved
Monitor impact
In Twelve Months
Use full year of new metrics to benchmark progress
Revisit allocation of marketing focus to reflect sources of
impactSource: SiriusDecisions
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Contact Us
Megan Heuer, Service Director
Marketing Operations Strategies
(203) 665-4022
Follow Megan and SiriusDecisions:
http://twitter.com/megheuer
http://twitter.com/siriusdecisions
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