CEMA 2019 - Marketing ROI (Fannin)(R1) · But, when the market slowed, Marketing Budgets were the...
Transcript of CEMA 2019 - Marketing ROI (Fannin)(R1) · But, when the market slowed, Marketing Budgets were the...
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CEMA
Dan Fannin: VP Business Process Excellence @ Regal Beloit
Marketing & Measuring ROI
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The Burning Question?How do we Measure Marketing Success?
Objectives
MarketingStrategy
StrategyDeployment
SuccessMetrics
StrategyFine-Tuning
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Marketing
Product
Place Promotion
Price
Target Market
E-mailMarketing
Advertising
TradeShows
DigitalMarketing
SocialMedia
SalesPromotions
DirectMarketing
PublicRelations
SalesLiterature
TradePublications
DirectSales
Campaigns
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MarketingModels
Digital Traditional
Event/Field
MerchandisingDemonstrations
Trade EventsField Sales
PR/Media Relations
In Store/P.O.S.
Direct Mail
Print Collateral
Website
Social Media/YouTube
Web Banner Ads
SMS/MobilePrint Advertising
Marketing Campaign Models
Three key customer touchpoints
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Tradeshow Leads
eMail Blast Leads
Trade Publication
Leads
Targeted Industry Research
Other Leads
Goal: Marketing campaigns are to convert leads to customers.
Marketing CampaignsDesigned for one thing – Lead Generation
This Photo by Unknown Author is licensed under CC BY-SA
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Tradeshow Leads
eMail Blast Leads
Trade Publication
Leads
Targeted Industry Research
Other Leads
Marketing CampaignsDesigned for one thing – Lead Generation
This Photo by Unknown Author is licensed under CC BY-NC
Hand off to company Sales Professionals
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Marketing CampaignsLead Generation to Customer
This Photo by Unknown Author is licensed under CC BY-NC-ND
Sales Professional Role is convert Leads to Orders
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25% of the leads you generate are totally unqualified; they won't ever buy.
50% of the leads generated are qualified; but not ready to buy right now.
25% leads are legitimate and should advance to sales.
Sales reps make 1.3 (average) call attempts before giving up on a lead.
Research: Source: 2017 Gleanster Research and Forrester Research studies
2017 Gleanster and Forrester Study
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Current State of Lead Generation
Tradeshow Leads
eMail Blast Leads
Trade Publication
Leads
Targeted Industry Research
Other Leads
This Photo by Unknown Author is licensed under CC BY-NC-ND
Research shows only 20% of sales leads are ever followed up. In other words, 80% are lost without
trace simply due to lack of follow-up.https://www.marketingdonut.co.uk/sales/sales-techniques-and-negotiations/why-you-must-follow-up-leads
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Lead: Opportunity Generation - The ScienceFocuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.
Lead: Demand Generation - The ArtFocuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer.
Opportunity Generation – primary objectives• Know and profile of your audience• Identify quality leads and prospects• Identify specific contact for sales follow-up• Provide qualified leads and pass to sales
Demand Generation – primary objectives• Generate interest and demand• Educate and provide insight• Drive brand awareness and perception • Increase audience ‘top of mind’
Lead Definitions
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Lead: Opportunity Generation - The ScienceFocuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.
Lead: Demand Generation - The ArtFocuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer.
Opportunity Generation – primary objectives• Know and profile of your audience• Identify quality leads and prospects• Identify specific contact for sales follow-up• Provide qualified leads and pass to sales
Demand Generation – primary objectives• Generate interest and demand• Educate and provide insight• Drive brand awareness and perception • Increase audience ‘top of mind’
Lead Definitions
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In-Tangible Metrics
Total Visits First Time Visitor Pages Visited Return Visits Traffic Source Click Thru Rate Time on Page
Content Download Unique Visitors Pg View /Session Referral Traffic Traffic Rate New Content Map Heat Map / Web Pg
Key Word Perform SEO Traffic No. Pageview /Pg Content Backlog New Content Views Avg Time / Content Top Post Viewed
Domain Authority Link Building Metric Page Load timeMobil Ready Organic Search Registration Use of Apps & Tools
Twitter Tweets Twitter Followers Twitter Share Facebook Likes Facebook Views Facebook Share Facebook Comment
YouTube Likes YouTube Views YouTube Shares Instagram LinkedIn Social Interactions Follower KPI
Bad Email Address Bounce Rate Delivered Rate Total Open Rate Unique Open Rate Click thru Rate Unique Click Thru
Spam Capture Rate Unengaged Rate Forward Rate List Growth Rate Opt-out Rate Subject/Open Rate Complaint Rate
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Unknown order conversion rate.
In-Tangible Metrics
Total Visits First Time Visitor Pages Visited Return Visits Traffic Source Click Thru Rate Time on Page
Content Download Unique Visitors Pg View /Session Referral Traffic Traffic Rate New Content Map Heat Map / Web Pg
Domain Authority Link Building Metric Page Load timeMobil Ready Organic Search Registration Use of Apps & Tools
Twitter Tweets Twitter Followers Twitter Share Facebook Likes Facebook Views Facebook Share Facebook Comment
YouTube Likes YouTube Views YouTube Shares Instagram LinkedIn Social Interactions Follower KPI
Unknown order conversion rate.“Ratio to Sales” metrics can build
ROI metrics to measure campaign effectiveness.
Bad Email Address Bounce Rate Delivered Rate Total Open Rate Unique Open Rate Click thru Rate Unique Click Thru
Spam Capture Rate Unengaged Rate Forward Rate List Growth Rate Opt-out Rate Subject/Open Rate Complaint Rate
Key Word Perform SEO Traffic No. Pageview /Pg Content Backlog New Content Views Avg Time / Content Top Post Viewed
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Research from InsideSales.com shows that 35–50% of sales go to the vendor that responds first.
https://www.gartner.com/en/sales-service/insights/challenger-sale
The Challenger SaleCompete and win in a customer-empowered world
2011 by Matthew Dixon & Brent Adamson
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Lead: Opportunity Generation - The ScienceFocuses on capturing contact information for follow-up. A lead has a known data profile and can be counted, scored and traced to specific financial outcomes.
Lead: Demand Generation - The ArtFocuses on shaping perception and creating interest in your product or service. The goal is to engage the largest portion of your audience as possible and make them want what you offer.
Opportunity Generation – primary objectives• Know and profile of your audience• Identify quality leads and prospects• Identify specific contact for sales follow-up• Provide qualified leads and pass to sales
Demand Generation – primary objectives• Generate interest and demand• Educate and provide insight• Drive brand awareness and perception • Increase audience ‘top of mind’
Lead Definitions
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The Burning Question?How do we Measure Marketing Success?
Historically: Number of New Products Introduced!
Number of New Catalogs Produced
Number of Sales Promotions and People Trained
Number of Distributor Visits and Number Trained
Number of OEM Visits and Number Trained
Number of New Customers (Count)
Number of Sales Dollars Generated (about once every 3 years)
But, when the market slowed,Marketing Budgets were the first to be reduced.
Number of New Trade Publications Ads / Articles
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The Burning Question?How do we Measure Marketing Success?
“ROI is the most important measurement for marketing.”
The best way to measure marketing effectiveness is to calculate the return on investment using three factors:
• What is the new Customer Lifetime Value?
Having these three pieces of data allows us to make smarter marketing decisions
and where we should spend money.
• What is the Cost to Acquire Customer?• What Call To Action converted them to a paying customer?
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Customer Lifetime Value (CLV)
1. Measure the amount of gross profit or sales that is generated from a customer over the entire time they do business with a company.
What is the new Customer Lifetime Value?
https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp
Gross Profit – Marketing CampaignMarketing Campaign
Annual Sales – Marketing CampaignMarketing Campaign
or
Customer Lifetime Value – Marketing CampaignMarketing Campaign
2. Or, measure annual volume of sales that is generated from a customer.
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2. As a business sales term, cost of acquisition is tied to marketing and sales campaigns because the more streamlined those campaigns become, the lower the customer cost of acquisition will be.
Cost to Acquire Customer (CAC)
1. Cost of acquisition is a term used across business and accounting to describe the total costs incurred when signing a new customer.
What is the Cost to Acquire Customer?
Sales Activity + Engineering Support + Marketing Campaign# New Customers
https://www.investopedia.com/terms/c/costofacquisition.asp
3. Since these costs can be quite high, it is a standard rule of thumb in business that it costs more to sign a new client than to retain a current client.
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Cost toAcquire aCustomer
(CAC)
Monetization (LTV)
An out of balance business model
MarketingCost
SalesCost
SamplesCost
EngineeringCost
What is the Cost to Acquire Customer?
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Cost toAcquire aCustomer
(CAC)
Monetization (LTV)
A well balanced business model
What is the Cost to Acquire Customer?
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Call To Action (CTA)
Call to Action is a campaign comparison model designed to maximizing spend.
https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp
VS.
Customer Lifetime Value – Tradeshow Marketing Campaigns (All shows)Tradeshow Marketing Campaigns (All shows)
Customer Lifetime Value – Web Marketing Campaigns (All)Web Marketing Campaigns (All)
Customer Lifetime Value – Publication Marketing Campaigns (All)Publication Marketing Campaigns (All)
VS.
What Call To Action converts lead to customer?
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Summary
Use ‘Ratio to Sales’ metrics and build ROI metrics to measure campaign effectiveness.
• What is the new Customer Lifetime Value?• What is the Cost to Acquire Customer?• What Call To Action converted them to a paying customer?
As you consider or expand your Marketing Metrics,Metrics should have Orders or Sales in the calculation!
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Questions