Metrics and Analytics Clinic - Marketo APAC
Transcript of Metrics and Analytics Clinic - Marketo APAC
© 2014 Marketo, Inc. Marketo Proprietary and Confidential
Metrics and Analytics Workshop
How to Harness the Power of Data to Maximise Marketing ROI
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Topics
• Building Marketing Credibility
• The Right Metrics
• Revenue Metrics• Marketing Program
Performance
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Quick Housekeeping
• Chat box is available if you have any questions
• There will be time for a Q&A at the end • We will be recording the webinar for
future viewing• All attendees will receive a copy of the
slides/recording • Twitter hashtag: #Marketo
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12%
20%
15%
9%
44%
Improve profits by more than 20%Improve profits by 10% to 20%Improve profits up to 10%No major change in profits generatedDon't Know
What Profits Can Be Generated With 10% More Budget?
#1 Answer:Don’t Know
Source: 2010 Lenskold Group / emedia Lead Generation Marketing ROI Study
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Where Metrics Go Wrong
Vanity MetricsSound good and impress people, but don’t measure impact on revenue or profitability
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Where Metrics Go Wrong
Activity MetricsMeasure what you do instead of what results and impact you have
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When Metrics Take Away Credibility
Cost MetricsFrame marketing in terms of cost and spending instead of results and outcomes
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Metrics That Give Marketing Power“Speak the Language of Business”
Aggregate impact on company revenue; pipeline performance; predictive forecasts
Revenue Cycle and Forecasts
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Metrics That Give Marketing Power“Speak the Language of Business”
Incremental revenue contribution and ROI of individual marketing programs
Program Performance
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Revenue Cycle Metrics
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Marketo’s Revenue Cycle
TOFU MOFU
Opportunity CustomerLead
Sale
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Nurturing Database
BOFU
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Marketo’s Revenue Cycle
Opportunity CustomerLead
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Nurturing Database
Exposed to us via content, brand, or word of mouth
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Marketo’s Revenue Cycle
Opportunity CustomerLead
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Feels a relationship and trust with us
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Opportunity CustomerLead
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Names are just names.
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Marketo’s Revenue Cycle
Opportunity CustomerLead
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Meaningful interaction with us
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Marketo’s Revenue Cycle
Opportunity CustomerLead
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Nurturing Database
Qualified potential customer Nurture until sales ready
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Marketo’s Revenue Cycle
Opportunity CustomerLead
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Marketing qualified lead (score > 100) – Sales Development Rep (SDR) reach-out
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Marketo’s Revenue Cycle
Opportunity CustomerLead
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Qualified as sales-ready by Sales Development Rep (SDR)
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Marketo’s Revenue Cycle
Opportunity CustomerLead
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Accepted and actively worked by sales:marketing quota attainment
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Revenue Cycle Modeler
Screenshot: Marketo Revenue Cycle Analytics
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Filter/Drill into data, e.g. by Program Type, Business Unit, Geography, etc.
Key topic areas:• Balance (Reach)• Flow• Conversion• Velocity Trends over time
Screenshot: Marketo Revenue Cycle Analytics
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Use Metrics to Set & Justify Budgets
New Targets
60,000
InventoryOf ActiveTargets
131,000
New MQLsScore>100
23,00015.3%
Inventory of Active MQLs
10.5% 20,000
New Opps*
1,000 6 Month Created Opp Inv.
2,000
270
*Opps is bigger than SQLs because includes outbound and partner referrals
SDR capacity driven
Inb
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120,000(900K DB Total)
New Names
New SQLs
922
2.4%
1.9%
75%
Win
s35% win
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Introducing Marketing Forecasts
• Where the CSO lacks “bottom-up” visibility, marketing forecasts can fill the void
• Marketing has long-term view and visibility into the early stages of the revenue cycle
Traditional Marketing Forecast
The market will grow by an estimated 4.2% overall and by 5.1% in the Western region.
Highly Accountable Marketing Forecast
Marketing will generate an incremental 30 new deals worth $4.0 million of bookings that are not currently in the sales forecast.
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Marketing Forecasts
Get The “Definitive Guide to Marketing Metrics & ROI”http://marketo.com/DG2MM
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Program Performance
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Accurately Tracking “Investment” vs Budget
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Why Measuring Return is Hard
• Multiple touches. Seven touches needed to convert a cold lead into a sale
• Multiple influencers. Typical buying committee has 5-21 people
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Source: 2013 Lenskold Group 2013 Lead Generation Marketing Effectiveness Study
Ways that Companies Measure Program ROI
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First Touch
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Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
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Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Inbound creates the best leads by far: high conversion, high velocity
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Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
But we also use a Portfolio of programs
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Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Sponsored Email builds the database, but low conversion
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Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Webinar, tradeshow, PPC, and virtual tradeshow are top paid TOFU
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Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Paid Social & Display Ad drive brand and amplify inbound as well
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Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.
Average days to Opportunity: 327
days
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Multi-Touch
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Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
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Track All Touches Across People
Screenshot: Marketo Revenue Cycle Analytics
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Example: Multi-Touch Attribution
A deal worth $100,000 recently closed. Three people were involved in the deal: • Person A attended Seminar A and Trade Show B• Person B attended Trade Show B• Person C was sent Direct Mail C
$100,000 Revenue
$25,000 $25,000 $25,000 $25,000
Seminar A$25,000
Tradeshow B$50,000
Direct Mail C$25,000
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Screenshot: Marketo Revenue Cycle Analytics (actual data)
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Source: Marketo Revenue Cycle Analytics, Apr 2014* Percentage of all programs in channel that achieve MT Ratio > 5
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Source: Marketo Revenue Cycle Analytics, Apr 2014* Percentage of all programs in channel that achieve MT Ratio > 5
Inbound + Nurture = 58% of (MT) PipelinePaid Programs = 42% of (MT) Pipeline
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Source: Marketo Revenue Cycle Analytics, Apr 2014* Percentage of all programs in channel that achieve MT Ratio > 5
(MT) Ratio = Pipeline / Investment
>10 is Great and <5 is FailSponsored Email = 12.8, Tradeshow = 10.6, PPC = 13.0, Webinars = 25.4, Field Events =
6.6, Content Syndication 7.7
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Source: Marketo Revenue Cycle Analytics, Apr 2014* Percentage of all programs in channel that achieve MT Ratio > 5
% Programs with MT Ratio > 5e.g. Tradeshow has good average
but 49% programs “fail”
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Test and Control
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Example: Test and Control
Source: Lenskold Group
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Planning for Marketing MeasurementMeasure ROI to find not just what
works, but what works better. Establish Goals
and ROI Estimates Up-Front
Design Programs to Be Measurable
Focus on the Decisions that Improve ROI
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Tweetable Takeaways & Q&A
1. Reporting is less important than DECISIONS that improve ROI
2. Focus on financial metrics that matter to the CFO (profit, cash, revenue)
3. Avoid cost and spend metrics – focus on investment and return
4. Multi-touch attribution gives more insight into the full funnel
5. Almost anything can be measured with testing, but you can’t test everything
6. A trusted marketing forecast is the single most important step to make marketing a revenue driver, not a cost center
@jonmiller