definitive-guide-to-marketing-metrics-marketing-analytics.pdf

Theitivefinide DeG u Marketing Metrics & Analytics marketo.com Definitive Guide to Marketing Metrics and Analytics Contents Why Should I Read the Definitive Guide Part 5: Program Measurement 37 to Marketing Metrics and Analytics? 3 Why Measuring Marketing Programs is Difficult 38 Method One: Single Attribution (First Touch / Last Touch) 40 Part 1: Measurement Builds Respect and Accountability 4 Method Two: Single Attribution with Why Now Is The Time For Marketing Metrics 7 Revenue Cycle Projections 41 Method Three: Attribute across Multiple Programs Part 2: Planning for Marketing ROI 9 and People 44 Step One: Establish Goals and ROI Estimates Up-Front 11 Method Four: Test and Control Groups 46 Step Two: Design Programs to Be Measurable 15 Method Five: Full Market Mix Modeling 48 Step Three: Focus on the Decisions Program specific metrics – what you should that Improve Marketing 16 measure and track 49 Conclusion: Program Measurement Applied 50 Part 3: A Framework for Measurement 17 Where Metrics Go Wrong 19 Part 6: Marketing Forecasting 51 The Right Metrics 21 Part 7: Dashboards 55 Part 4: Revenue Analytics 23 Define the Revenue Cycle 24 Part 8: Implementation • People, Process, Revenue Cycle Metrics That Matter 29 and Technology 59 Revenue Performance Management Metrics 33 People and Culture 60 Process 62 Technology 64 Conclusion 65 Key Lessons to Improve your Performance, Profitability, and Credibility with Marketing Metrics and Analytics 66 © 2011 Marketo, Inc. All rights reserved. 2 Definitive Guide to Marketing Metrics and Analytics Why Should I Read the Definitive Guide to Marketing Metrics and Analytics? Do you know what profits a 10% increase This guide will help you do just that. We in your marketing budget would generate? will help you answer key questions like: According to the Lenskold Group’s 2010 B2B • What are the most important marketing 5 QUESTIONS TO GUIDE YOUR Lead Generation Marketing ROI Study, the metrics for me to use? MEASUREMENT INSIGHT most common answer to this question is 1. What are your specific objectives for marketing • How can I measure my various marketing “I Don’t Know.” investment and how will you connect your programs’ impact on revenue and profit? Forty-four percent (44%) of qualified investments to incremental revenue and profit? • How can I best communicate marketing marketers have no idea what a 10% budget 2. What impact would a 10% change in your results with my executive team and board? increase could do for their companies. marketing budget (up or down) have on your • Which personnel, procedural, and profits and margins over the next year? If you fit into this 44%, you will experience cultural changes need to occur within my The next three years? Five? difficulty protecting your budget. In fact, you’ll organization so I can implement marketing likely find yourself asking the question the other 3. Compared to relevant benchmarks (historical, measurement? way around: “What will happen now that my competitive, marketplace), how effective are you budget has been decreased by 10%?” • And many more… at converting marketing investment into revenue You can’t expect your organization to place value and profit growth? The bottom line of any business is the top on something you’re unable to quantify. line: revenue and faster growth! 4. Which are appropriate targets for improving revenue leverage (defined as dollars of profit So let’s get started. over dollars of marketing and sales spend) over the next few years? Which initiatives will get you there? 5. What questions do you still need to answer with regard to your knowledge of the return on marketing investments? What are you going to do to answer them? (Source: MarketingNPV) © 2011 Marketo, Inc. All rights reserved. 3 Inc.Definitive Guide to Marketing Metrics and Analytics Part 1: Measurement Builds Respect and Accountability © 2011 Marketo. All rights reserved. 4 . Definitive Guide to Marketing Metrics and Analytics Part 1: Measurement Builds Respect and Accountability Marketing suffers from a crisis of credibility. make hard choices with company money. Show that you are “de-funding” things you impressions. Soft metrics like brand awareness. • How much profit was made last quarter Typically. build the portfolio of investments. marketers will better It’s no secret that CEOs and boards don’t communicate marketing’s value and impact to care about the open rate of your last email the executive suite. marketing • Why are you confident in the above answers? thing a marketer can to do to build credibility with often does not command the respect it the CEO is to offer some cuts to marketing programs. CEOs and CFOs the right revenue metrics. and profit. or that it is an arts and forecast for the next quarter? According to Marketo CEO Phil Fernandez. marketers must track and measure the impact of all key marketing activities. See Part 4 for more on how to measure or strongly agree that their “ability to track marketing ROI gives In today’s economy. and Of course.” Source: Forrester Research care about growing revenue and profits: • How much faster are we growing now versus last quarter? Last year? © 2011 Marketo. All rights reserved. GRP. revenue. and that you are willing to respect of their organizational peers. demonstrate a strong sense that you are managing a control over the revenue process. B) weren’t What can marketers do so they are seen reach are important – but only to the extent aligned with evolving company goals. Inc. Seventy-six percent (76%) of B2B marketing professionals agree campaign or your last press release’s number of views. This helps and profits? How can marketers take more metrics like pipeline. executives outside the marketing versus this quarter? department perceive that marketing exists • How much revenue and profit do you CUT PROGRAMS TO BUILD CREDIBILITY solely to support sales. deserves. earn a seat at the revenue table? both hard and soft. or C) seem as part of a machine that drives revenue that they quantifiably connect to hard less important now than other initiatives. Use metrics that matter to By speaking the same quantitative language the CEO and CFO as the CEOs and CFOs. the #1 crafts function that throws parties and churns out color brochures. But keep all but the most critical metrics internal to marketing. marketing more respect. 5 . Either way. organic search rankings and previously did that either A) didn’t work. and effort – to acquire new important thing marketers can do to change qualified leads and nurture those leads until the perception that marketing is a cost center. © 2011 Marketo. not only hurt marketing’s influence and revenue table. This will To formulate accurate forecasts. running a marathon as the ground shifts beneath your feet. If you’re and marketing must sit together at the going to do it without measurement. and are report what has happened in the past.” David Raab. and revenue. blindfolded. What marketing’s impact and influence will continue to be limited across your company. All rights reserved. Author. Winning the from making the right strategic investments to See Part 6 for more on Marketing Forecasting. time. they are ready to talk with sales. you methodology are able to frame their budgets can’t be an effective marketer if you only in terms of investments. “Marketing has always been a grueling and competitive sport – not marketing investment other executives think of costs and profit unlike running a marathon. in media and technology. Inc. and managing expectations. sales was already difficult is becoming increasingly difficult. make a hard business case for the resources it needs to deliver the results it has promised. See Part 5 for more on measuring the impact Make hard business cases for spending With its forecast in place. Forecast results. Marketing Measurement Marathon improve results over time. With the changes in the buying process. The better able to justify and defend their budgets. best marketers forecast the results they expect in the future – and quantify their forecasts in terms of leads. When you talk about future results. not costs. not spending This requires knowing what it will take – in Forecasting is perhaps the single most money. pipeline. it’s like your marketing truly deliver financial returns. it can also prevent your company in an earthquake. credibility. it’s like running a marathon. If you can’t confidently identify which parts of loss.Definitive Guide to Marketing Metrics and Analytics Part 1: Measurement Builds Respect and Accountability Know the impact of each When you talk about marketing spending. marketing must then of various marketing programs. they think of revenue and growth. In the same way that you can’t drive quickly Marketers who use this type of rigorous if you rely only on your rear-view mirror. 6 . directly rise and fall with marketing’s ability to quantify how their campaigns and programs Because they have ready access to deliver value in line with company revenue information. It is more important than ever for until much later in the buying process. had some impact even though fuels a significant change in the way marketing contribution wasn’t measured and sales teams must work – and work CEO ratings of marketing’s performance 47% together – to drive revenue. 35% “70% of the buying process is now complete Marketing programs made an by the time a prospect is ready to engage with impact and marketing was able to sales.” SiriusDecisions. 7 . document their contribution Source: VisionEdge Marketing & Marketo 2010 Marketing Performance Measurement and Management Survey of 423 executives © 2011 Marketo. buyers resist engaging with sales objectives. marketing to link the impact of its efforts and Marketing programs made This presents an incredible opportunity financial investments to revenue and profit.Definitive Guide to Marketing Metrics and Analytics Part 1: Measurement Builds Respect and Accountability As the function that “owns” the relationship CEOs Grade Marketing WHY NOW IS THE TIME FOR with these early stage prospects. Inc. and this in turn made a difference. Marketing 67% of CEOs give their marketing departments a B or C MARKETING METRICS 20% now is responsible for a much greater portion of the revenue cycle than ever before. All rights reserved. Inc. in their companies. The way that prospects research and buy solutions today has been forever transformed But with great power comes great by the abundance of information available on responsibility. Not sure the marketing programs websites and social networks. a difference but contribution for marketing to reinvent itself as a core and establish a true process for marketing ROI wasn’t measured part of the company’s revenue engine. but they probably Enter Marketing Metrics. The results will come. come look at all these charts C-level executive. and graphs!” marketing’s impact on metrics that matter to Marketing accountability is a double-edged the CEO and CFO.” producing asset. results and claim marketing accountability. and investment in the right systems and tools. Confusion Inevitably. Inc. It can’t be “I know I should measure marketing results. © 2011 Marketo. the CMO may deny the need to be The CMO knows that marketing accountability accountable for results. Basic metrics such as lead “Revenue starts with marketing. over long-term marketing accountability. like a true especially when you don’t yet know how “Hey. trust me!” but I just don’t know how. but there is no holistic understanding in front of the revenue pipeline – where 2. source tracking and cost-per-lead are put in At this stage. The journey metrics like pipeline. At first. they lack an explicit connection to hard incentives and compensation. accountability just to avoid facing which rankings. 8 . and profit. marketing measures everything that can be performance as well as good performance. These CMOs proudly display their It requires top-level commitment. Accountability stage often leads to marketing’s isolation from remains hidden. that marketing is a cost center. but the path to achieve it 5. not a science. this will reinforce the perception “Marketing is an art. important as these metrics may It can also require a rethinking of marketing be. but the results—in terms result is a focus on soft marketing KPIs instead of peer respect and impact on profits—are of hard revenue growth. marketing truly finds its place place. However. starts justifying marketing expenditures as the bottom line? Will I lose my job?” investments in revenue and growth. measuring and forecasting well (or poorly) your department is doing. revenue. This is Taking on accountability can be scary. Fear of how marketing activities are impacting key marketing stops being a cost center and “What if my marketing activities don’t impact bottom line metrics. The may not be easy. category they are really in. not a revenue- measured. All rights reserved. Denial 3.Definitive Guide to Marketing Metrics and Analytics Part 1: Measurement Builds Respect and Accountability THE 5 STAGES OF MARKETING ACCOUNTABILITY 1. (easily) measured — from website page views Getting to this final stage of marketing Some CMOs may be tempted to avoid to press release downloads to search engine accountability is difficult for any organization. Self-Promotion when the CMO can act. 4. shining a bright light on weak earns a seat at the revenue table. and talk.” other departments and executives. on short-term ROI clearly worth it for any marketing team. This is when marketing truly In a desperate attempt to appear accountable. Being stuck in this is inevitable. sword. discipline. Inc.Definitive Guide to Marketing Metrics and Analytics Part 2: Planning for Marketing ROI © 2011 Marketo. All rights reserved. 9 . Designing programs to be measurable 2a Objectives Strategy Tactical Plan Impact & Measurements are Contribution It’s important to plan your programs with ROI 3. and tactics. 3 ROI Measurement ROI results guide changes to strategies and tactics in the next cycle of marketing. Inc. diagnose weaknesses. planning. strategies ROI Scenarios reports enable to improve profits. and generate insight to improve effectiveness.” Process begins with ROI recognize that reporting for reporting’s sake scenarios early in the Planning for marketing ROI involves planning cycle to shape is less important than the decisions those three main activities: objectives. When you quantify improve marketing then planned concurrent the outcome you expect from each marketing to campaign plans.Definitive Guide to Marketing Metrics and Analytics Part 2: Planning for Marketing ROI Many marketers think of marketing ROI as The fastest-growing companies measure Marketing ROI Management Process reporting on the outcome of their programs. so tests Measurement Plan Only with discipline. you can then determine exactly incorporated to how you will measure the program against closed-loop process will you be able to improve precision. Next Campaign (Source: Lenskold Group) © 2011 Marketo.” 1 Best Assumptions to deliver monthly. 2b Measurements capture lift. 1. ROI to find not just what works. but what often in the form of a set of reports they have works better. and a and variations can be Test Variations in Plan investment. But the best companies not just “proving ROI. 2. All rights reserved. Establishing targets and ROI This is the difference between backwards- estimates up-front looking measurement and decision-focused management. based on which have the History to Guide higher ROI potential. Measurements them. those goals and position yourself to achieve improve your marketing ROI. They focus on “improving ROI. 10 . Focusing on the decisions that will prioritized first and in mind from the outset. This is a terrible habit. “Does our marketing generate any value for have. and expected case scenario outcomes – and impact profitability. Just the fact that the marketer is walking 2. he or she will be much your first step is to quantify your expected more likely to support the investment. Inc. the CFO will see not ROI ESTIMATES UP-FRONT only the cost that goes out the door. question marketing in the door with a spreadsheet of numbers establishes that marketing is speaking the Unfortunately. the two outcomes. worst changing parameters may vary the results Most companies will find that profits increase when case. © 2011 Marketo. these questions immediately put investments. for building credibility. but also SHOULD MARKETING HAVE exactly what benefit is expected to come from TO JUSTIFY ITSELF? When planning any marketing investment. metrics to support those goals. this money we want to spend?” actual results. This results program. All rights reserved. As a result.Definitive Guide to Marketing Metrics and Analytics Part 2: Planning for Marketing ROI STEP ONE ESTABLISH GOALS AND Benefits of ROI goals With ROI goals in place. CFO’s language. shareholders?” the underlying reasons why other executives. marketers to conduct time-consuming and expensive benchmarks and KPIs for each marketing analysis to justify their business function. As long as they are what impact they expect the program to clearly labeled. “How do we know that marketing really works?” especially CFOs. Modeling your ROI goals will also help you to: in a significant “insight opportunity cost” since all the resources that could have been directed towards The first step of any program plan should be to • Identify the key profit drivers that most the pursuit of true insight are instead diverted to define your objectives and then pick measurable affect the model and ultimately your profits. the CFO will understand that 1. marketers plan most common questions asked by non-marketing programs and commit their budgets without Don’t worry too much about the fact that executives are: establishing a solid set of expectations about you are making estimates. “proving” that marketing works. constrained analytics resources are focused on the that answered the basic (but critical) question of key decisions that will improve profits rather than “what do we expect will happen in exchange for • Establish the targets you will use to compare justifying marketing’s existence. 11 . All too often. that cost. That in itself is highly effective marketing on the defensive and inevitably cause The solution is to assign up-front goals. and is one of any plan requires numerous assumptions. According to consultancy MarketingNPV. Imagine if each • Create “what if” scenarios to see how PO came with an ROI plan – with best case. 505 Total Marketing Investment $167. Net Profit) $29.000 • How much revenue each sale produces Mass Media $100.. Inc.813 Profit from Incremental Sales $197. All rights reserved.e.693 Return / Marketing Investment ROI 17.505 Gross Margin – Marketing Investment Return (i. the better you will justify the investment. but as always.813 Incremental Gross Margin $197. and focused on incremental gross margin event. the closer you can get to on the right.Definitive Guide to Marketing Metrics and Analytics Part 2: Planning for Marketing ROI STEP ONE How to build models for ROI goals Here’s an example ROI calculation.2% • The gross margin percentage • The total marketing and sales investment Direct Marketing $40.000 Target Reached 27. Note how it captures all calculation.000 Incremental Sales 594 Total Marketing Budget $165.000 Net Present Value per New Sale $875 MARKETING STAFF EXPENSE Incremental Revenue $519.7% (Source: Lenskold Group) © 2011 Marketo.25 Average Daily Rate $450 Average Gross Margin % 38.0% Total Staff Expense $2. Some programs will have softer expenses including all variable costs on the goals. 12 . such as number of attendees at an left. courtesy Not every program will have a complete ROI of Lenskold Group.000 % Convert to Sale 2. Basic ROI Calculation Even the simplest ROI goals should include: MARKETING EXPENSES (EXCLUDING OFFER COSTS) MARKETING IMPACT QUANTITY • How many incremental sales are generated Campaign Development $25. measuring profits and ROI.750 Number of Staff Days 6. including an online Lead Generation ROI planning tool. All rights reserved. 13 . Inc. lenskold. (Source: Lenskold Group ‘CMO Guide to Marketing’) © 2011 Marketo.com/tools/LeadGenTool.Definitive Guide to Marketing Metrics and Analytics Part 2: Planning for Marketing ROI STEP ONE Lenskold Group provides excellent tools for managing marketing ROI. This and other tools are available for free from the Lenskold Group website (http://www.html). the risks. It’s • Travel expenses often a good idea to run your assumptions and • The cost of sales’ time spent following up on leads targets by the most skeptical and pessimistic member of your team. but it can also include profitable will show a negative ROI once these broad changes to the business environment expenses are included. and worst RELEVANT EXPENSES case scenarios. marketing ROI models show ridiculously high an understanding of how changes to various returns because they don’t incorporate all relevant assumptions might impact the results. put in place contingencies to manage sales wastes on pursuing leads that don’t convert.Definitive Guide to Marketing Metrics and Analytics Part 2: Planning for Marketing ROI STEP ONE Understand Best Case. where of leads but does not include the cost of the time possible. Examples include: It also shows that you understand the possible • Staff costs within marketing risks that would hurt your program’s ROI. variable and semi-variable costs. This lets you protect your credibility in case things go sour. This may include things directly It’s quite possible that a program that at first appears related to the program. you lessen the likelihood that other executives will shoot bullets at your feet later on. © 2011 Marketo. INCORPORATE ALL including expected case. 14 . best case. for example. and shows Often. Let them find all the Take. All rights reserved. and economy. a program that generates a lot ways the program could fail – and then. Worst Case. and Risks Scenarios The best plans show a range of targets. Inc. By proactively identifying and managing risks up-front. sometimes it is OK to in your marketing. using test and control groups.” In almost every case. you will need to program effectiveness. it will become invaluable down As Jim Lenskold says. marketing should your spending levels across markets to most is that you start to build the history as do the same to generate similar insights to optimize measure relative impact. These attributes can Invest in Marketing R&D. “ It is more important to periodically capture 10% of your budget to testing and experimentation See Section 5 for more on measuring ROI potentially high-impact insights than to frequently is usually a wise investment. This often includes automation system to a simple spreadsheet (@jimsterne). Inc. Just like the overall corporation invests setting up test and control groups or varying hosted on a share drive – what matters the in R&D to generate future profits. offer. take specific steps to make your marketing be stored in anything from your marketing This is a term used by consultant Jim Sterne programs measurable.” Jim Lenskold. Without variance early as possible. 15 . All rights reserved. it is impossible (and unprofitable!) to questions: Most companies do not begin this process measure everything. or how to make impact of your marketing programs and it work better. “Prioritize when and • How will you measure? the road when you attempt any of the more what to measure based on the answers you need sophisticated approaches towards measuring to make decisions that will improve your profits. intentional measurement strategies planned message. and they pay • What will you measure? for it later. • When will you measure? right away. early enough in their lifecycle. So as part of planning any any other relevant attributes. While it’s possible to measure just about anything program.Definitive Guide to Marketing Metrics and Analytics Part 2: Planning for Marketing ROI STEP TWO DESIGN PROGRAMS TO BE Data Collection A key part of planning for measurement is MEASURABLE simply tracking the appropriate attributes MEASUREMENT COSTS MONEY – for all your marketing programs (and their SO SPEND WISELY The best marketing programs have variants). investment level. Even if you don’t use the data Begin with the end in mind. This can include target audience. A good rule of thumb is that allocating improve your marketing precision and mix. future profits. In other words. channel. and Exercise discernment. measure less important outcomes simply for reporting purposes. Lenskold Group © 2011 Marketo. you need to answer these three in marketing. you may not be able to run a marketing program where the primary goal is use modeling to tease apart the incremental to learn whether something works. in advance. This way. Perhaps you’ve heard the adage that you can applied across the wrong strategies won’t looking decisions. you can still figure out why and how to This means you must measure things not just improve the program. goals. then building your measurements to capture even if you don’t meet all of your program information that facilitates these decisions. Think about where you measurement and marketing management. which prevents you from moving forward efficiently. THAT IMPROVE MARKETING messages. Ask yourself. you need to make to improve company profitability. beyond “what is” and start measuring want to end up before you begin. This is the difference between marketing In other words. for strategic. and what would I do if the answer were Each measurement should seek to augment X or Y?” An integral part of your planning process your understanding of how to make the is identifying up-front what decisions you program better and align it with your need to make to drive company profits. target segments and geographies – MARKETING REPORTING: JUST BECAUSE You’ll deliver the best ROI and reap the not simply “pass/fail” assessments of specific YOU CAN DOESN’T MEAN YOU SHOULD programs or tactics. marketers should focus but what you can ACT on. You can always evolve highest corollary benefits when you move past your mix of tactics. 16 . This is almost always because they are measurable – but because better than launching a new program you they will guide you towards the decisions don’t yet know anything about. torture the data until it confesses? What this means produce a fraction of your desired results. intelligence. objective- driven momentum? © 2011 Marketo. Isn’t it time to swap your over-the-shoulder stance.Definitive Guide to Marketing Metrics and Analytics Part 2: Planning for Marketing ROI STEP THREE FOCUS ON THE DECISIONS Your highest-ROI decisions will often flow from strategic questions about offers. “what if. answer. and strategize from It is the difference between data. Inc.” there. All rights reserved. “What question am I trying to and knowledge. is it’s important not to measure just what you can. but even the best tactics backward-looking measurement to forward. and company’s strategic objectives. Inc.Definitive Guide to Marketing Metrics and Analytics Part 3: A Framework for Measurement © 2011 Marketo. 17 . All rights reserved. Definitive Guide to Marketing Metrics and Analytics Part 3: A Framework for Measurement CEOs and boards don’t care about 99% of There are many other areas of marketing the metrics that marketers track – but they metrics that are not addressed directly in this do care about revenue and profit growth. Guide. These include: CUSTOMER SATISFACTION AND NET PROMOTER SCORES There are two primary categories of financial Customer Profitability: Lifetime value of an For many companies, a key metric is their Net Promoter Score (NPS), metrics that directly affect revenue and profits: incremental customer a customer loyalty metric based on customer answers to the question, • Revenue Metrics: Marketing’s aggregate  eb Analytics: Measures Web visibility to W “how likely are you to refer us to friend or colleague?” According to impact on company revenue target audiences against potential audiences, answers on a 0-to-10 rating scale, customers are grouped into three and compares against industry and competitor categories: • Marketing Program Performance Metrics: benchmarks Promoters (9-10) The incremental contribution of individual marketing programs Public Relations: Measures views and impact Enthusiastic customers who will fuel growth with repeat and referral of corporate communications initiatives business. Passives (7-8) Product Performance: Comparatively Current customers susceptible to competitor offerings and thus have a measures the total sales and margins of neutral brand impact. individual products Detractors (0-6) Brand Preference and Health: Assesses Customers who voiced dissatisfaction and harm brand preference in relation to preference for the brand. competing brands To calculate a brand’s NPS, use the following equation: Sales Tool Usage: Measures which product NPS = [% of Promoters] – [% of Detractors] marketing materials are being used the most A company’s Net Promoter Score has been shown to have positive And many other areas… correlations with faster growth and profits. Marketo’s own research This is not to imply that these metrics are not provides support for measuring customer satisfaction: high-growth important for marketers to track – just that companies are more likely than low-growth companies to incorporate they are likely to be less relevant to financially- customer satisfaction into their marketing executives’ compensation. focused executives outside of marketing. © 2011 Marketo, Inc. All rights reserved. 18 Definitive Guide to Marketing Metrics and Analytics Part 3: A Framework for Measurement WHERE METRICS GO WRONG Measuring what is easy Activity, not results When it is difficult to measure revenue and Marketing activity is easy to see and measure There are literally hundreds of marketing profit, marketers often end up using metrics (costs going out the door), but marketing metrics to choose from, and almost all that stand in for those numbers. This can results are hard to measure. In contrast, sales of them measure something of value. The be OK in some situations, but it raises the activity is hard to measure, but sales results problem is that most of them relate very little question in the mind of fellow executives (revenue coming in) are easy to measure. Is it to the metrics that concern a CFO, CEO and whether those metrics accurately reflect the any wonder, then, that sales tends to get the board member. financial metrics they really want to know credit for revenue, but marketing is perceived about. This forces the marketer to justify as a cost center? Of course, it’s okay to track some of these the relationship and can put a strain on metrics internally within your department marketing’s credibility. Efficiency instead of effectiveness if they will help you make better marketing In a related point, Kathryn Roy of Precision decisions. But it’s best to avoid sharing them Focusing on quantity, not quality Thinking suggests paying attention to the with other executives unless you’ve previously According to a 2010 Lenskold Group / emedia difference between effectiveness metrics established why they matter. Lead Generation Marketing ROI Study, the (doing the right things) and efficiency metrics number one metric used by lead generation (doing – possibly the wrong – things well). Vanity metrics marketers is lead quantity, whereas barely half For example, having a packed event is no Too often, marketers rely on “feel good” of marketers measure lead quality. Focusing good if it’s full of all the wrong people. measurements to justify their marketing on quantity without also measuring quality Effectiveness convinces sales, finance and spend. Instead of pursuing metrics that can lead to programs that look good initially senior management that marketing delivers measure business outcomes and improve but don’t deliver profits. (To take this idea to quantifiable value. Efficiency metrics are likely marketing performance and profitability, they the extreme, the phone book is an abundant to produce questions from the CFO and other opt for metrics that sound good and impress source of “leads” if you only measure quantity, financially-oriented executives; they will be no people. Some common examples include not quality.) defense against efforts to prune your budget press release impressions, Facebook “Likes”, in difficult times. and names gathered at trade shows. © 2011 Marketo, Inc. All rights reserved. 19 Definitive Guide to Marketing Metrics and Analytics Part 3: A Framework for Measurement Cost metrics What went wrong here? The marketer The worst kinds of metrics to use are “cost performed well, but he made the mistake metrics” because they frame marketing as of not connecting his marketing results to FINANCIAL OUTCOMES OVER ACTIVITY a cost center. If you only talk about cost and bottom-line metrics that mattered to the CEO. budgets, then no doubt others will associate Look at the following (sanitized) letter from a CFO to a CMO for an By framing his results in terms of costs, he illustration of why financial outcomes are more important than activity, your activities with cost, too. perpetuated the perception that marketing cost and quantity. Let’s take a look at a real-life example: is a cost center. Within this context, it’s only natural that the CEO would reduce costs and “We seem to be purchasing GRPs and click-thrus at a lower cost than Recently, a marketer improved his lead most other companies, but what value is a GRP to us? How do we reallocate the extra budget to a “revenue quality and simultaneously reduced his know that GRPs have any value at all for us, separate from what others cost-per-lead to $10. Thrilled with his generating” department such as sales. are willing to pay for them? How much more/less would we sell if we results, he went to the CEO to ask for purchased several hundred more/less GRPs? more money to spend on this highly I think we need to look beyond these efficiency metrics and find a successful program. way to compare all these options on the basis of effectiveness. We Did the marketer get his budget? need a way to reasonably relate our expenses to the actual impact No. The CEO decided the reduced lead cost MARKETING CHAMPIONS they have on the business, not just on the reach and frequency we create amongst prospective customers. Until we can do this, I’m not meant marketing could deliver the same “Marketers have to be clear about what marketing comfortable supporting further purchases of advertising exposure results with fewer dollars – and so she cut produces. Sales sells, but what does marketing either online or offline… the marketing budget and used the extra produce? You might answer brand awareness, funds to hire new sales people. It seems to me that, if we put some of our best minds on the challenge, leads, and sales tools. But these answers we could create a series of test markets using different levels of disempower the marketing function. The best advertising exposure (including none) in different markets which might answer is that marketing generates cash flow in actually give us some better sense of the payback on our marketing the short term and identifies sources for future expenditures. cash flow in the long term.” My experience tells me that we are not approaching our marketing Roy Young and Allen Weiss, MarketingProfs programs with enough emphasis on learning how to increase the payback, and are at best just getting better at spending less to achieve the same results.“ (Source: MarketingNPV) © 2011 Marketo, Inc. All rights reserved. 20 often by comparing against historical data Revenue Metrics Marketing’s aggregate trends and competitor and marketplace benchmarks. cost. Forecasting. profit. or worse. what are? Anything category. Inc. and what can work better? performance. All rights reserved. 21 .) Performance Metrics contribution of individual marketing programs © 2011 Marketo. often on a dashboard. (See Section 6. margin. Your goals will put your performance that speaks to the CFO’s areas of primary Past: How did we do? into context. Most B2B marketers should focus on two Last quarter? categories of financial metrics: Diagnostic Metrics These metrics deliver insight into your CURRENT What is working. cash flow. make sure you set If activity. company’s ability to generate more profits and faster growth than your competitors.” Metrics & KPIs you share with fellow executives. and quantity aren’t the also different types of metrics in each goals for each of the key metrics you choose right metrics to use. your Future: How will we do? what’s expected – or better. based on time: to track. These questions break into three corresponding metric categories: This is what Roy Young and Allen Weiss of MarketingProfs call “speaking the financial Business Performance These are the most common reporting metrics that language of business. Financial Metrics How did we do last week? Last month? They are mostly BACKWARDS looking metrics.Definitive Guide to Marketing Metrics and Analytics Part 3: A Framework for Measurement THE RIGHT METRICS The Time Dimension Set Goals Lenskold Group points out that there are As discussed in Section 3. and help you and your fellow concern: revenue. Present: How are we doing? executives see if your results are on par with ROI. shareholder value – in other words. impact on company revenue Leading Indicators These metrics help you look FORWARD and forecast Marketing Program The incremental How will we be doing in the future? future results. Measure success versus goals for those metrics for every campaign. Make sure top contributors get recognition – give them badges they can put on the desks or cube. • Marginal cost to • Net promoter scores serve 5. It’s hard to on company revenue versus targets versus trend or database size put organizational focus on more than that. every product. every sales Marketing Program Incremental • Investment • Response rates • Expected rep/region. Inc. so • Cycle time benchmark • Marketing choose wisely. Profit Per Customer Lifetime value of an • Average selling price • Investment to • Retention rates 4. SHARES HIS SECRETS FOR PAST: HOW DID WE DO? IS WORKING? WE BE DOING? MEASUREMENT SUCCESS: Revenue Metrics Aggregate impact • Lead generation • Conversion rate • Size of prospect 1. contribution forecast 2. Choose no more five key metrics. Show trends for those metrics over time – that programs way you can immediately see where you are improving and where you are not. every channel. Have recognition systems tied to goals. All rights reserved. 6.Definitive Guide to Marketing Metrics and Analytics Part 3: A Framework for Measurement The Right Metrics: Summary BUSINESS PERFORMANCE DIAGNOSTIC METRICS LEADING INDICATORS PAUL ALBRIGHT. © 2011 Marketo. 22 . etc. R  inse and repeat. Put on a dashboard for everyone to see so there incremental customer acquire • Products per is always a succinct view of what marketing is a customer customer trying to achieve. MARKETO’S CHIEF REVENUE METRICS & KPIS PRESENT: WHAT FUTURE: HOW WILL OFFICER. Performance Metrics contribution of • Pipeline contribution • Lift over control contribution forecast individual marketing • Program ROI group 3. and where you stand. The best performing companies track results weekly. and quarterly – so they can improve just as often. monthly. Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics © 2011 Marketo. All rights reserved. 23 . Inc. and what they plan to do to improve their results. We call this new measurement process track movement through the stages – which in Debbie Qaqish. clear rules for how prospects move through as well as the business rules that determine the stages over time. the revenue cycle. marketing Some old-fashioned marketers say that Defining the stages of the revenue cycle must begin to operate and sound more like sales. This new way of working requires core. When marketing and Analytics rests in clearly defined stages and sales collaborate to formally define each stage. opportunities. © 2011 Marketo. reliable Traditional sales methodologies such as SPIN marketing is responsible for up to 70% of funnel with a plan that ultimately produces higher Selling and Miller Heiman provide standard the entire buying process – which means value leads and maximizes revenue. pipeline coverage will help me hit my targets their contributions with metrics that measure for this quarter?” pipeline. to understand how their activities move how their key metrics stack up against their targets. All rights reserved. marketers have not applied what matters to a CxO – and talk about these metrics DEFINE THE REVENUE CYCLE the same level of rigor to their portions of in terms their executive leadership can understand and evaluate. In today’s online and social world. marketing isn’t responsible for revenue. moving through marketing and sales to closed That is why the foundation of Revenue Cycle business and beyond. and these sales methodologies form Today’s successful marketer has evolved beyond they work (and work together) to generate the basis for the best sales analytics. they create the foundation for a metrics that show marketing’s aggregate comprehensive set of robust revenue metrics. and this new turn lets them answer key questions such as of The Pedowitz Group. 24 . a Revenue Marketer™ knows to define the stages of the revenue cycle. Chief Revenue Marketing Officer ‘Revenue Cycle Analytics’. says. At their the language of traditional marketing. into stages and allow the sales executive to in 2007 to describe this new breed of marketer. starting with potential buyer awareness and prospects forward. since The first step in Revenue Cycle Analytics is it is the only way marketers will be able At any given moment. This is unfortunate. Inc. They measure Traditionally. Methodology To thrive in today’s changing marketplace. We requires a new revenue methodology. these methodologies break the sales cycle Group coined the term “Revenue Marketer™” new metrics and analytics. As demand generation agency The Pedowitz Group disagree. and revenue.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics Perhaps the most important metrics for a prospect’s movement from one stage to building marketing’s credibility are the the next. The Pedowitz revenue.” benchmarks and best practices for the sales marketing and sales need to rethink how function. A NEW BREED: REVENUE MARKETERS™ impact on revenue. marketers must “manage a predictable. says that these Revenue way of working ‘Revenue Performance “how long is the sales cycle?” and “how much Marketers™ use the language of business to describe Management’. or clicking an email that we send. we filter out the names that haven’t engaged with us as a brand. This is Sales SAL Lead the first metric that we report to fellow executives and the board.) © 2011 Marketo. 25 . downloading content from our website. Prospect & Engaged This definition applies to those who show real engagement. (These customers are then passed on to a new revenue cycle for upsell and retention. Opportunity The sales team has accepted these leads and added them to the pipeline as a deal they are actively working.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics Example: Marketo’s Revenue Cycle Different companies will make different decisions about what AWARENESS definitions best suit their revenue cycles. such as attending Recycled a webinar. but as a case study example. as determined by our “fit” scoring rules. but aren’t yet ready for engagement with sales. such as those who simply threw business cards into our bowl at Nurturing a trade show. “Qualified” denotes the right kind of person at the right kind of company. At this stage. Database MQL Lead SDR Prospect This stage refers to qualified prospects that could buy one day. here are Marketo’s definitions. Inc. All rights reserved. Opportunity Customer Lead These marketing-qualified leads are prospects that show enough behavioral Sales engagement or buying intent that we want to call them. Customer We have closed these deals and won new customer business. All Names Marketing STAGE DEFINITION Engaged All Names This is the entry point for everyone. We have purposely called this stage “Names” because these individuals are not leads when they first enter the funnel. SQL Sales Lead These leads have been qualified as “sales-ready” by a sales qualification rep. The methodology behind these definitions is in part responsible for Marketo’s highly efficient revenue engine and fast growth. Inc. the lead is disqualified. These stages denote When a lead is deemed “sales-ready. $100+ million in revenue. If not. representative has 14 days to contact the lead and choose to accept the lead. where leads are nurtured until they are sales-ready.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics Three Categories of Stages Your company may use only a few revenue stages. Gate Stages A gate stage is a simple qualification check with no time Assume your company only wants leads from companies of dimension.” it can become a defined time period in which a lead must be evaluated a “marketing-qualified lead. active opportunities are not yet committed to a certain timeline. If a lead stays in this stage for over 14 days. there are only three categories of stages: CATEGORY DEFINITION / TIMELINE EXAMPLE Inventory Stages An inventory stage is a “holding pool” where leads and Common examples of inventory stages include the prospect accounts can sit for an unlimited amount of time until they’re pool. 26 . or recycle it back for further nurturing. or you may model something more sophisticated like Marketo’s model – but no matter which specific stages you choose.” which can trigger a process that alerts sales management or even reassigns the lead to a different sales rep. © 2011 Marketo. All rights reserved. a lead will move forward if his/her company has more than $100 million in revenue. disqualify it. In the gate stage. it becomes “stale. ready to move to another stage.” The appropriate sales before moving forward or be eliminated from the process. SLA Stages SLA stands for “service level agreement”. Transition Rules 6 months nurturing) once leads are well qualified. All rights reserved. No lead left behind. ready to engage with sales. Don’t let potential This includes how your leads move from the customers end up in “lead purgatory. or that require provide the highest value. not all leads follow a linear STAGES on three fundamental principles: success path.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics Revenue Stage Model Best Practices Detours DETOUR DISQUALIFIED INACTIVE RECYCLED LOST A best-practice revenue stage model is based Of course. you need to define the business relationships with everyone else. 4. A Prospect may become Inactive Because no lead should ever remain stagnant if they don’t respond to a campaign or visit in the system. A Prospect may become a Lead when his/ to customer is often non-linear. To Definition Names Prospects Qualified Lost or leads that are not qualified. leads originally deemed “sales-ready” are not. 27 . back to marketing for nurturing. and use lower As the final step in formulating your revenue cost channels such as marketing to develop stage model. For example: to ensure your leads either flow forward or are recycled back to marketing. leads in deferred a few rounds of nurturing before they’re engage with prospects until prospects are not-in-profile responsive need of more opportunities sales-ready.” traditional success path to various detour Implement SLA stages wherever possible stages and back again. An Inactive Lead may move back to Prospect status if they respond to a new program. rules that govern how and when your prospects move from one stage to another. A person may move from Engaged to inventory stages to a minimum – perhaps just Prospect if their company reports annual one in marketing – so prospective customers revenue above $10 million and belongs to don’t sit idle. sales should not marked as who are non. 3. so make sure your model also defines “detour stages” to capture Sales resources are relatively expensive. Sometimes her Lead Score exceeds 100 points. A prospect’s journey from initial awareness 2. Keep your 1. one of your target industries. Inc. these leads should be recycled your website in more than six months. Sales interactions over the last nurturing (ongoing should start relatively late in the pipeline. © 2011 Marketo. Trigger campaigns and sales actions as prospects transition from stage to stage. Based on this. understand the status of any prospective customer. organization can use to measure results. Adjust lead scoring rules and sales alerts by stage. A revenue stage model also provides operational benefits that improve lead management processes. you can reassign a lead if no sales action is taken within a specific time. but expect it from a late stage opportunity. For example. and automatically send alerts and trigger campaigns when leads go stale. A revenue cycle model creates a common language the entire as well as detours and transition rules. 28 . Inc. © 2011 Marketo. You’ll note that it includes the success path stage. A revenue stage model can help you: Customize lead nurturing based on each prospect’s location in the cycle and automatically move prospects between nurturing tracks as they move through the funnel. you might be interested if an early-stage prospect visits your pricing page. For example.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics Example: Marketo’s Complete Revenue Cycle Below is Marketo’s final revenue cycle as BENEFITS BEYOND ANALYTICS shown in the Revenue Cycle Modeler. Sales and Marketing can better coordinate their activities and ensure alignment throughout the revenue cycle. All rights reserved. and define the actions required from each department. Define service level agreements for how long a lead can stay in certain stages. This is where critical insight can be gained Balance (Lead How many people are in each How many active prospects do I have – in measuring and optimizing marketing’s Counts) pipeline stage? since the size of my target prospect database aggregate impact on revenue. and how many marketing qualified to explore the four key “metrics that matter”: Are these trending up or down? leads did we pass last week? Flow. 29 . All rights reserved. Conversion and Velocity. Inc. Balance.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics REVENUE CYCLE METRICS METRIC QUESTIONS IT WILL ANSWER EXAMPLES THAT MATTER Flow (Lead How many people entered each stage  ow many new prospects were created H With the model in place. How many accounts? is a key leading indicator of future success? How does that vary by lead type? Are the balances going up or down over time? Conversion  hat is the conversion ratio W Which (if any) of my conversion rates from stage to stage? are trending up or down? Which types of leads have the best conversion rate? Velocity What is the average “revenue cycle” time? Do certain types of leads move faster through How does it break down by stage? the pipeline? How is their speed changing over time? © 2011 Marketo. marketers can begin Generation) in a given period? last month. based simply on measuring closed business – especially the whether a deal has closed. but it is difficult to several deals per quarter may find it more accurately track revenue until the sales cycle. Here is a screenshot of Marketo’s Revenue Cycle Analytics Dashboard. Inc. most companies (including Marketo) find that a mix of these three approaches is best. the more meaningful these metrics become. 30 . digging into Accounts are relatively easy to track for later-stage your earlier stages can serve as a valid proxy deals. meaningful than a company closing many if your deal amounts are highly variable (or just deals to measure marketing’s results on large).com make for marketing ROI. geography. © 2011 Marketo. helps to understand the aggregate revenue impact of each lead type. and velocity. a company that closes only Dollars are what we want. some of your marketing activities will show qualified leads generated rather than wild profits while others will not. conversion.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics The larger your flow in any given stage. stages of their funnel. QUESTION: SHOULD METRICS COUNT PEOPLE. Companies that sell a lot of deals at lower ACCOUNTS OR DOLLARS? price points will find more significance in their conversion metrics and flow than companies People are the easiest variables to track across the that sell fewer deals of greater size. All rights reserved. etc. But even entire revenue cycle. Note the ability to see the metrics that matter: balance. not individuals. Given these pros and cons. The ability to track how all those metrics are trending over time gives critical insight into trends versus historical benchmarks. roulette. It’s a bit like playing ROI of specific programs. but the value of these metrics companies in the latter scenario will find is limited because revenue usually comes from meaningful flow and results data at the early accounts. Also. business unit. flow. and drilling down into performance by lead source. but CRM systems such as salesforce. it hard to track accounts for early-stage leads. In this case. For example. we use behavioral lead Paid Names. © 2011 Marketo. our Understanding the conversion rates and SDRs apply a very strict filter to what they velocities of each stage in your revenue qualify and pass onto the sales team. Typically.800 want to annoy potential customers by calling them average for all Prospects is $55. too early in the buying cycle.” and pass on to the Sales Team. This Lead that one of our Sales Development Representa- generation programs to produce 9. so the resulting see as a result. Finally. as Sales Leads – but a full 80% of what they pass gets converted to an Opportunity. As discussed above. That’s why Marketo’s SDRs 4% of the nurture database becomes a Lead revenue. But while we incur a relatively low cost on SDRs. 31 . it is relatively inexpensive for an SDR generation investment. and the rest enter our nurturing At Marketo. Slightly less than half of our Leads budget by working backwards from how many customers we want to close in future months. it’s come from new Prospects. of marginal demand generation investment. paid Names each month. about $2. but relatively expensive Prospects. Our LEAD DEFINITIONS & CONVERSION RATES: cycle will help you better understand – and SDRs only pass 7% of all Leads to our AEs AN INTIMATE RELATIONSHIP communicate – your revenue cycle economics. and when more (or less) budget will impact (AEs) call Sales Leads. This information is invaluable when it comes Prospects become Leads within a short timeframe. About 40% of paid Names ultimately become Prospects. At Marketo.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics Example: Marketo’s Metrics Opportunities. we set the demand generation becomes a Lead every month. and the rest come It also allows us to answer precisely how much more expensive when our Account Executives from the nurture database. Marketo is relatively loose generate the remaining ¼. generating ¾ New Customers. and about 4% of the active Prospect database first month. to call an incremental lead.500 new means an incremental opportunity is worth tives (SDRs) should contact. Inc. database.000 a month on various demand leads and number of opportunities is 4%. As of early 2011. apply a very strict filter to which Leads they qualify each month. inbound programs 35% of all opportunities (the vast majority of deal. At the same time. For this reason. Marketo wins about in opportunity cost if we miss out on a potential of all our Prospects. and the incremental customer is worth about $5. So we’ve set our scoring thresholds such that about 20% of all new Conversion of Prospects to Leads. All rights reserved. and about 10% goes “inactive. so an in what we call a Lead. Our average the others are deferred or no decision). On average. we don’t investment per paid Prospect is $73. our SDRs pass meaning they haven’t done anything in six only 7% of their Leads to Sales – but a full 80% of months.000 in terms of variable demand For Marketo. Marketo spends combined conversion between number of scoring to determine when a Prospect becomes a ~$275. There will always be a trade-off between how strictly Let’s use Marketo’s actual revenue cycle It’s typical for more than one lead to be you define your leads and the conversion rates you metrics to illustrate: attached to each Opportunity. Leads over a two-year period. About 40% of Prospects will become those Sales Leads convert to Opportunities. 20% of our new Prospects become Leads in the time to set and defend the marketing budget. In fact. 03% 38 418 A Lead Type is any specific category of it may be a sign to invest more in that area.77% 14 2465 some will convert faster than others. Sponsorship 5.32% 4 234 pay-per-click will usually convert faster than leads from purchased lists. and velocities by lead source. up and down.67% 54 1362 metrics that matter (balance. if your leads for a certain source Important Lead Type Variables or product are converting faster than others. conversion.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics Drilling in by Lead Type Other examples might include industry. Web Referral 51. Organic – Google 44. LEAD SOURCE CONVERSION RATIO AVG TRANSITION FLOW Different types of leads will move through product line. and Prospects from Sponsorships. and Content Syndication convert at the slowest rate. Prospects from PPC tend to convert the fastest. Examples include: PPC_GS_US 43.49% 37 946 velocity) by lead type. Inc. Drilling in (ALL TYPES) TIME (DAYS) the revenue stages differently. velocities.48% 13 260 Lead source: Leads generated from Not Available 26. AppExchange 50. flows.95% 37 313 cycle differently. you’ll also be able to track what is trending Trade Show 14. Partners.84% 24 113 the leads from each division will likely behave differently. This shows that Prospects from the AppExchange and Website are the highest quality and are most likely to convert to Leads. leads that may move through the revenue Alliance 36. we see Marketo’s Prospect to Lead conversion rates. or channel source. flow. Trade Show – Virtual 11. Webinar 17. business unit or both.44% 70 229 Partner 8. © 2011 Marketo. Here. Not Website 47.87% 29 1736 why Revenue Cycle Analytics become even more powerful when you can drill into the investments required for each lead type.88% 15 464 For example.04% 37 133 Division: Whether your divisions are Web Direct 30. All rights reserved.83% 44 115 by geography. marketing investment and mix decisions. Virtual Trade Shows. That’s only can you parse the differences between your conversion rates. some will by lead type is a great way to make better have better conversion rates than others.63% 40 111 Example of revenue cycle metrics by Lead Source.82% 55 164 Company size: Leads from large enterprises may convert more slowly than SMB leads. 32 . and your Online Ad 13. Content Syndication 10. of your revenue engine’s efficiency. How are marketing’s activities lowering marketing or sales is performing.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics REVENUE PERFORMANCE With an RPM mindset in place. Because RPM 1. you will gain on marketing and sales. 33 . provides an accurate measure activities’ true ROI. or gross in isolation. In other words.g. (Total Revenue or Bookings) Revenue Engine Effectiveness = (Total Marketing and Sales Investment) © 2011 Marketo. how is end-to-end revenue engine. but on the the total expense-to-revenue ratio for overall effectiveness and efficiency of the sales and marketing combined (e. the most Revenue Performance Management (RPM) - Average selling price important questions you can answer about is a strategy to optimize interactions with - Sales cycle times marketing’s results are: buyers across the revenue cycle to accelerate - Sales productivity predictable revenue growth. companies With this in mind. All rights reserved. What effects are marketing’s investments - Win rates is about transforming how marketing and having on sales’ effectiveness and - Time to ramp a new sales rep sales work – and work together – it requires productivity? a new set of metrics that focus not on how 2. more a much more comprehensive view of your than any other. but rather on how marketing margin) generated divided by the total spend impacts sales productivity. Inc. here are some additional begin to realize that the most important metrics that effective RPM marketers can add MANAGEMENT METRICS marketing metrics are really about sales to their own dashboards: effectiveness. marketing improving the net revenue engine The best way to measure the overall effectiveness)? effectiveness of your revenue engine is to When you no longer focus on marketing measure total revenue (or bookings. This metric. Inc. Value of Pipeline Investment per Prospect Sales Cycle Times Balance of Open Qualified Lead Contributed by Marketing Opportunities # Marketing Qualified % Marketing-Qualified % of Wins Contributed by Investment per Marketing % Reps Making Quota Velocity / Cycle Time for Leads Lead to Sales-Accepted Marketing Qualified Lead New Name to Lead Lead # Sales Accepted Leads % Sales-Accepted Lead to Value of Revenue Investment per Sales Time To Ramp a New Sales Velocity / Cycle Time for Opportunity Contributed by Marketing Accepted Lead Rep Opportunity to Win # Opportunities % Opportunity to Win Investment per RPM Efficiency = (Total Key “Awareness” Metrics: Opportunity Revenue) / (Total web traffic. etc. FLOW CONVERSION IMPACT INVESTMENT SALES AND RPM OTHER # of New Names % Name to Prospect % of Pipeline Contributed Investment per New Average Selling Price Balance of Active Prospects by Marketing Names in key inventory stages # Prospects % Prospect to Marketing. All rights reserved. here’s a broad list of metrics you can choose from to measure your impact on revenue. Investment) # Wins Investment per Win Total Period Revenue vs Quota # Lost Discounts # Churn Pipeline Renewals / Retention © 2011 Marketo. 34 . social followers.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics The Big List of Revenue Metrics Incorporating all these together. direct/branded Marketing + Sales traffic. etc. of Marketing-Qualified Leads and conversion rate from Prospect to Lead over time versus Versus goals The best marketers set goals (weekly. monthly. © 2011 Marketo. All rights reserved. Inc.g. each of which will frame your operational focus. sales created vs. Trends over time Looking at your data over time For example. By channel. company’s historical results. goals for each geographic region. you may look at the number helps you see if you’re improving. region. By source Many companies look at lead flow and opportunity creation by source (e.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics Variants of Each Metric TRACKING METHOD BENEFIT Each metric on the previous table will have multiple variants depending on how you slice By week.g. so pick the Versus benchmarks Compare results (e. month and quarter A regular cadence helps keep and dice them. It can be costly and unwieldy to look at too many variants too frequently. marketing created). 35 . conversion rates) versus number of metrics to track in keeping with similar companies. the more important it is to track your key metrics on a more granular level. and/or quarterly) for all key metrics. and always track results AND results versus goals. product. The more complex your business. metrics in a different context to help you make better decisions. as well as versus your own your organization’s needs. We also track the 12-month goals on a weekly basis. Size of Open Opportunity Pipeline versus goals on a monthly/quarterly basis. All rights reserved. % On-Target SMB Opps • West Average Selling Price SMB Opps • East 8. vs Quota. 36 . Marketing/SDR Opps Channel vs Quota. Demand Gen Investment Per Prospect New Month-To-Date. as well as the key variants: Blog Subscribers Dollar Value 1. and Size of Target Prospect Database At Marketo. Target Latent Leads Total Marketing Investment New Month-To-Date. % On-Target Sales Outbound Opps International Referral Opps Install Base 7. New Leads: New Since Last Week. New Business Closed: Month-To-Date. New Facebook Monthly Users Total Demand Generation Month-To-Date. Enterprise Opps Average Discount vs Quota. and 30 key metrics trend for all these variants over time. Renewals Business Closed: Month-To-Date.Definitive Guide to Marketing Metrics and Analytics Part 4: Revenue Analytics Example: Marketo’s Key Revenue Here are some of the key metrics we track on Lead to Opp % Metrics a monthly basis. We track Actual. Size of Open Opportunity Pipeline: International Leads SMB Size today plus trend over 12 months Enterprise Total New Opportunities 6. Target. % On-Target Inbound Leads (All Programs + All Headcount) SMB Leads • West Total Marketing Investment 4. % On-Target International Opps Retention / Churn © 2011 Marketo. Inc. New Prospects: New Since Last Week. Upsell Business Closed: Month-To-Date. Size of Target Prospect Database: Per Opportunity Size today plus trend over 12 months SMB Leads • East Enterprise Leads Total Bookings 5. % On-Target Total New Leads Demand Gen Investment Per Opportunity New Target Active Leads 3. we track five key metrics versus Actual / Target %. New Opportunities: New Since Last Week. All Website Traffic Deferred or Lost Opps Branded Traffic Net-Add Opps Here are the key metrics Marketo tracks on (Direct + “Marketo” Keyword) Won Opps a weekly basis. % On-Target Total New Prospects Programs Investment 2. Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement © 2011 Marketo. 37 . All rights reserved. Inc. I don’t know which half. 38 . so it is a challenge to MEASUREMENT It’s easy to ask the question. Inc. The money you sales reps. Marketing measurement should not be about determining the answer can be very difficult. since trends to the weather to the quality of the these align to the budget allocation process and tend Knowing when to measure. In many cases. factors proving ROI. the trouble in order to convert a cold lead into a sale. “What kind of know which programs have the most impact. results do my programs deliver?” However. Different marketing programs affect DON’T GO OVERBOARD ON PROGRAM each individual differently. All rights reserved. but improving ROI. but marketers need to decide marketing program has on revenue and where to invest their budgets today. According to This section is all about how marketers can MarketingSherpa. such a committee can involve 21 or more PROGRAMS IS DIFFICULT influencers.” Whether or not this is the correct number every marketer knows it takes multiple touches to Perhaps the most common question marketers create a customer. the revenue metrics in Part 4 are show may deliver results next month or perhaps usually more important than program effectiveness Measuring the contribution that a given measurement. deliver results?” Multiple influencers. “Did this program (trade show. This fact makes it difficult to ask is. Last month’s trade programs delivered better ROI? In the end. Conventional marketing famously remarked. In the case of effectiveness of their decisions. can marketers claim their uncertain point in the future. Jim Lenskold points Some of the key challenges to marketing outside marketing’s control can significantly out that marketers tend to overemphasize their program measurement are: impact program results – from macro-economic assessments of media and marketing channels. the average buying committee answer this challenging question – and build for a five-figure purchase at a mid-sized a sensible framework for measuring the company comprises six people. invest today will have an uncertain impact at an economy improved. Extraneous variables.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement WHY MEASURING MARKETING larger companies or more complex purchases. “Half of the money wisdom says at least seven touches are needed I spend on advertising is wasted. profits has been the holy grail of marketing measurement ever since John Wanamaker Multiple touches. email blast) allocate revenue to any specific touch. If revenues increased because the to be visible to the CFO and other executives. is. not for two years. © 2011 Marketo. value data – but this additional insight comes various methods exist to give companies with a corollary rise in cost and complexity. 39 . Fortunately. Attribute across Multiple Programs and People Multiple Programs and People 11% 4.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement Methods to Measure Marketing Program ROI Each sequential method on this list will give How lead generation marketers Just because measuring marketing ROI is hard you a more accurate view into your customer measure marketing programs: doesn’t mean it’s impossible. Single Attribution (First Touch / Last Touch) 2. Single Attribution with Revenue Cycle Projection 21% Attribute Across 3. most organizations begin the process of effectiveness: marketing program measurement with the first and second methods and begin to experiment 45% with more approaches as they move up the Single Attribution maturity curve. All rights reserved. Test and Control Groups Test and Control 5. LESS ACCURATE LESS COST 20% No tracking 1. Inc. Full Market Mix Modeling Groups INCREASED INCREASED 3% INSIGHT COMPLEXITY Market Mix Modeling (Source: The Lenskold Group / eMedia Lead Generation Marketing ROI study) © 2011 Marketo. As a insight into their various programs’ levels of result. 000 M)37)#4$ Revenue Cycle Analytics Pipeline Contribution: $500. Inc.. 40 . New York Default Lead Reports Filter: Driver: Chris.000 sales rep had nurtured Batting Average Analyz 20.000 Contributing Leads: 45 Success Path Analyzer Contributing Leads: 45 Comparison Analyzer Tags From: 400 Tags To: 600 From: 1000 To: 4500 Example Reports Last touch attribution If a Lead becomes Driver: Chris Location: San Francisco Opportunity Analyzer Program Analyzer Location: New York Color Last Touch My Models Program: Webinar Bubble Size gives revenue credit a Prospect after N-. that company Email Reports Email Reports Campaign Reports From: 2500 To: 8000 From: 2500 To: 8000 the Lead Source.)44$M)37)#4$ 0 Contribution Analyzer Analyzers Batting Average Analyz 0 Cost $53. © 2011 Marketo. or to the key person. even though a 0 Contribution Analyzer 0 200.00. New York Settings allocates all the value a webinar and to the FIRST program generated a Lead that Standard Reports X Axis Lead Reports Leads by Campaign Settings 2.000 Pipeline Dollars Web Page Reports Pipeline Contribution: $10.000 Leads by Month Leads by Month G"4. credit. that demo Opportunity Analyzer Location: New York Color before the key action would receive revenue Program Analyzer N-.000 Pipeline Dollars Web Page Reports S'2)6'*)$T"66%#4$ Pipeline Contribution: $10.000 S'2)6'*)$T"66%#4$ Program: Webinar Y Axis Company Reports credit to the initial Revenue Cycle Analytics Contributing Leads: 45 Tags From: 1000 To: 4500 Example Reports Location: San Francisco Cost $53.3)$ to the LAST program watching a product From: 400 To: 6000 Pipeline Contribution: $500.000 Success Path Analyzer Contributing Leads: 45 Comparison Analyzer Tags Driver: Chris From: 400 To: 600 that touched the lead demo. All rights reserved.000 X Axis that touched the closed a deal one year Leads by Campaign G"4.3)$ From: 400 To: 6000 the Lead in several other ways. This usually means allocating the of investments are made in lead from sales generation instead of lead nurturing deal to the source of the first person from that Hard to account for quality until the deal company. Shonal | Location: San Francisco.000. can be skewed by a particularly “investment per” lead metrics large deal or long sales cycle Program Analyzer SINGLE DEFINITION EXAMPLE New Analyzer Settings Print PDF ATTRIBUTION Default First Touch First touch attribution If a company held Program Analyzer Standard ReportsNew Analyzer Settings Filter: Print Driver: PDF Chris. My Models Program: Webinar Bubble Size Analyzers Cost $53. Gives straightforward insight into closes.000 M)37)#4$ 20.. Typically this is later.00. Shonal | Location: San Francisco.000 200.000.$ 2.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement PROS AND CONS OF SINGLE ATTRIBUTION (FIRST TOUCH / LAST TOUCH) Pros Cons METHOD ONE Relatively easy implementation and low cost Doesn’t account for the influence of subsequent touches– so insights are directional at best Provides good insight into the early SINGLE ATTRIBUTION The most common methodology for tracking the stages of the revenue cycle Attributes too much credit to lead results of marketing programs is to assign all the (FIRST TOUCH / LAST TOUCH) value to the first (or last) program that touched Works well when the majority generation programs and not enough to nurturing touches or contributions the deal. would give revenue Company Reports Program: Webinar Y Axis Campaign Reports Cost $53.000 webinar.$ deal.)44$M)37)#4$ was taken. but its impact is especially acute in just quantity. Trade estimate future results. Uses estimates to quantify the future value of today’s Uses past performance to investment payoff can lead to decisions that In the example model on the next page. to evaluate Trade Show 2 just happened last week. Inc. © 2011 Marketo. But this is not an apples-to- apples comparison. For example. this approach looks at what impact time. not just top sources without accounting cycle and embellishes that view by estimating for the influence of other of the funnel Approaches to marketing ROI measurements the trade show’s long-term impact based on marketing touches that do not properly account for the time-to. This applies across all Uses lead quality. Trade Show 2 looks as if it has delivered very up with actual results poor results. of programs. so the ROI of your current marketing the trade show had at the top of the revenue Focuses on revenue impact Attributes value to lead programs remains in limbo. not fairly good picture of its returns. 41 . With programs Requires that estimates companies with considered-purchase products the basic first touch single attribution model. historical conversion metrics.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement METHOD TWO SINGLE ATTRIBUTION WITH Solution: revenue cycle projections By adding revenue cycle projections to REVENUE CYCLE PROJECTIONS a first touch single attribution. must eventually be backed and long revenue cycles. underlying changes industries. you can gain PROS AND CONS OF SINGLE ATTRIBUTION An obvious disadvantage of first and last deeper insight into the long-term impacts WITH REVENUE CYCLE PROJECTION of your programs. investments bias towards short-term gains over building Show 1 occurred a year ago and shows a so cannot incorporate true long-term value. All rights reserved. In contrast. instead of touch attribution is that today’s marketing waiting to see the actual results of a trade Pros Cons investments may not pay off for quite some show. 903 Trade Show 2 $12.221 $258.012 517 21 1 0 $15. LEADS EST. when we apply revenue cycle understanding of how leads from similar trade shows have converted over time to the above model.000 Last Week 1. All rights reserved. and we expect to add an incremental $600. 500 people stopped by the booth.510 $161.214 Trade Show 2 $12. PROGRAM INVESTMENT DATE ALL TOUCHED PROSPECTS EST.946 $– However. we are able to estimate what the total future impact of the trade show will be.000 Last Year 901 560 209 21 7 $590.012 517 221 18 7 $663. OPPS EST. Inc. WINS EST. REVENUE Trade Show 1 $18.” or “The event was great.000 to pipeline over the next 12 months as a result?” © 2011 Marketo. 42 .Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement METHOD TWO PROGRAM INVESTMENT DATE ALL TOUCHED PROSPECTS LEADS OPPS WINS PIPELINE REVENUE Trade Show 1 $18. “The event was great.656 Think of it this way.000 Last Week 1. When discussing a recent marketing program. would you rather say. 500 people stopped by the booth.082 $117. PIPELINE EST.000 Last Year 901 560 207 17 5 $421. 871 58% 27 2.3 accelerate movement from existing leads).5 investment per Prospect from that Source.6 times more likely to turn into Opportunities stage Prospects that do not convert. 3rd Party Email to Investment per Prospect lists the average variable On the other hand. All rights reserved.) Website 2. so any Prospect who Prospects show the total flow (number) of new Trade Show – Virtual 3. and using third-party email lists to promote our content. and most likely to convert to opportunities. demand generation program investments.4 from that Source to convert to a Lead.30 23% 61 1.6 Sales Prospecting 1. later in their buying process. Leads from the website Other Paid 208 $187.0 source. virtual trade shows are the best performing time period. Paid Webinar 1.0 actually does register on the website is likely to be Prospects from each Source. Those SOURCE PROSPECTS INVESTMENT % LEAD VELOCITY LEAD TO This reflects the fact that our website does not below the line are Sources with fixed investments PER PROSPECT (DAYS) OPP INDEX require registration for early-stage content but does only. 43 . fastest Sources above the line are programs with variable moving.793 $25.0 © 2011 Marketo.50 13% 93 1. followed by PPC.2 Partner Co-Marketing 903 17% 102 1. that a Lead from that Source will convert to an Opportunity. stage in the buying process with paid programs. we meet prospects at every Promote Content 3.888 26% 46 2.65 18% 43 0.703 $221.1 Other Inbound 370 100% 19 9. Below is a summary of some of our recent program results: Inbound leads are by far the highest quality.760 $68. than leads from a virtual trade show.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement METHOD TWO Marketo Case Study Example Marketo relies mostly on Single Attribution with Revenue Cycle Projection to internally assess its KEY INSIGHTS: COLUMN DEFINITIONS: program results. % Lead shows the likelihood that a Prospect from Trade Show 2. Velocity shows the average time it takes a Prospect Pay per Click Search 990 $158.3 Content syndication tends to generate very early are 2.50 21% 60 1.302 $34.9 Taking all the costs and conversion rates into that Source will convert to a lead over a 12-month account. (For example. Inc. In-person trade shows are not a cost-effective way to generate new Leads (though they can be useful to Lead to Opp Index shows the relative likelihood Content Syndication 536 $82. paid webinars.44 17% 81 1. for buying-oriented content.10 45% 42 1.84 12% 59 0. Person B attended Trade Show 1 only. generation analysis Allocation Methodologies However. and $25K to Direct Mail 1. you By Program Type: Some marketers will choose need to allocate portions of the resulting deal to weight certain types of touches more heavily PROS AND CONS OF ATTRIBUTION ACROSS MULTIPLE PROGRAMS AND PEOPLE to each one – including count.000 recently closed. Start with the action you are analyzing (pipeline creation. so refer to our best practice guidelines: Incorporates nurturing touches as well as lead Requires assumptions that can add bias to the have more impact than a simple website visit. becoming a lead than the white paper they Person A attended Trade Show 1 and Seminar 2. Once you compile a comprehensive list. based on the level of engagement. especially if you weight all touches equally © 2011 Marketo. significant touch that affected all of the contacts affecting other influencers. All rights reserved. $25K to Seminar 2. than others. pipeline. you need to more – that opens you up to other executives decide how to weight each touch point – if at all. touches from multiple people to close a deal. sure you account for only the touches that CEO shouldn’t be weighted more heavily than occurred before the action was taken. and so on. How to Track and Analyze Allocations downloaded and trade show they attended 12 months ago. Focuses on all contacts associated with a deal. Lacks insight into synergy of tactics. For example. 44 . closed revenue. you might give $50K credit to Trade associated with that particular deal – but make weighting matches your business realities – a Show 1. This EXAMPLE OF ATTRIBUTING ACROSS assumption is especially true for programs that MULTIPLE PROGRAMS AND PEOPLE This approach recognizes that it takes multiple happen immediately before the key behavior.) and work backwards to identify each that touched the key decision maker than those the website. First things first. be careful not to give more weight to more expensive programs just because they cost Especially useful for long revenue cycles with Important to find any possible “hidden” Before you allocate your revenues across many touches contributors. no not just the first correlations or connections Risk of over-crediting low impact touch points. You will a Manager if he or she has little impact on the track each touch and contact person from here. Just be sure your In this scenario. attending a two-hour seminar may tricky. the fact the prospect attended last Assume a deal worth $100. Inc. including online and sales activity multiple programs and people. revenue. deal. This is where things can get For example. questioning your assumptions.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement METHOD THREE ATTRIBUTE ACROSS MULTIPLE By Time: You may want to weight some touches over others based on when they occurred in PROGRAMS AND PEOPLE relation to the action that delivered value. Pros Cons profit. and attempts to measure the contribution of week’s webinar may have more to do with them Three people were involved in the deal: each individual touch. By Role: You may give more weight to programs Person C was sent Direct Mail 1 and clicked to etc. Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement METHOD THREE The first step in attribution across multiple all the relevant contacts associated with an programs and people is to track all the opportunity. You can see every time an opportunity touches a contact. – that affect of the touches. allocate the value of the opportunity to each WHEN YOU ASSUME YOU MAKE AN ASS OUT online activity. Inc. you need to significant touches – including programs. 45 . be New Analyzer Actions Print PDF to this opportunity sure you can defend them in front of your executive Against Score or Against the like a consultant Default leadership and board – otherwise you risk hurting Model as the LINE dimension View: Score Mode Account: Acme Inc Standard Reports Star = Role in Opty Acme Inc the credibility of the entire analysis. Lead Reports Account Analyzer Activity Interesting Leads by Campaign Edit me and clone me Logged Joe Smith (8) Moment Nancy Jones (12) Leads by Month 80 Phil McCloud (4) Email Reports Frank Johnston (3) Campaign Reports 70 Freddie Rainbow (1) Company Reports Harold Scotsman (0) Web Page Reports 60 Jamal Tucker (0) Revenue Cycle Analytics Example Reports 50 My Models Checking box includes Analyzers 40 Opty their history – these Success Path Analyzer Created are people attached Comparison Analyzer 30 to the account but not Program : Webinar Opportunity Analyzer Cost per Lead: $21 the opty 20 Success: ? Program Analyzer Contribution Analyzer Ability to right click on 10 Web Activity a name and add a role Batting Average Analyz to an opty right here Time Axis (By first touch for any lead “checked” to last) This is a screenshot of the Marketo Influencer Analyzer. So no Account Analyzer Publish Settings Add more people matter what allocation assumptions you make. etc. All rights reserved. Once you have that. sales activity. © 2011 Marketo. OF U AND ME Assumptions may be necessary when using multi-touch attribution. but they inherently add a subjective element to any ROI analysis. campaigns on target awareness. and not to another Outcome Units the effectiveness of that initiative against a 1500 well-formed control group by comparing the homogeneous part of that group. you can credit any difference in traffic growth to your brand advertising spend. for example. Inc. Of course. You can compare the behaviors of these two Baseline Campaign market segments to analyze your campaigns effectiveness – did you experience more Source: Lenskold Group growth in direct and branded search from the geography with more spending? Assuming all other marketing and sales influencers on these two groups were the same. but it’s prohibitively the impact of one of your brand advertising expensive to test everything. this means you factors being equal. All other Control group adjusted two groups’ results. two groups to the particular program. all other marketing and non-marketing Almost anything can be measured using Say. One potential 0 approach would be to split your market into 1 2 3 4 5 6 7 8 9 10 11 12 two equal geographic parts. that you want to measure 500 proper test design.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement METHOD FOUR TEST AND CONTROL GROUPS Putting it to practice 2500 With test and control groups. you need to A great way to measure the true impact apply the program or treatment that you 2000 of a particular marketing program is to test want to measure to one component of your target buyer group. All rights reserved. 46 . © 2011 Marketo. and spend twice Time Period as much on one group than the other. you’ll be able to attribute to treatment group size need to plan your programs to be testable any difference in buyer behavior between the 1000 Baseline includes from the get-go. but effectiveness of one entire lead nurturing Can measure almost any impact on it’s prohibitively expensive to test almost anything with the right test everything Pre-post testing can give you directional information track versus another rather than individual about program effectiveness. Eighty percent program to your results after – or to project what confidence should be good enough – we’re not the outcomes WOULD have looked like without the You can also test almost anything. Did that particular require 99% confidence. see Marketo’s marketing touch since it assumes you would have Messages. but since it can’t emails. average selling price. webinar have an impact? Pro: This approach doesn’t give all the credit to the For more on testing statistics. some existing sales without it. conversion rates. No one wants to be resonated the most with you target audience? the brunt of the joke that says. profit. you can also use decent control group variance to support program at best. but ANOTHER OPTION: PRE-POST TESTING traffic. tacks – allowing you to test and measure the Almost everything can be tested. talking about drug testing or other things that Programs and tactics. of touches rather than just single touches. much less rigorous form of testing is where it may be hard to see the impact of the statistically significant in comparison with to compare your results before your marketing program on things like revenue. It’s also possible to measure combinations More sophisticated and analytical – Focused on specific tactics – can’t Other factors – such as the economy. – or all of them.” send an email? Spending levels. If results are down. marketing gets credit. search You don’t need to go overboard. measurement © 2011 Marketo. Should you want to test multiple Relatively low cost if you can design a Only works when you’ve incorporated eliminate non-marketing factors.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement METHOD FOUR Test design The importance of statistical The outcome metric (what you measure) can significance be anything: revenue. Inc. based on historical trends. What happens if we double PROS AND CONS OF TEST AND CONTROL GROUPS Cons: It’s difficult to account for seasonal or cyclical investment in display advertising? Pros Cons effects. including: touch. average standard deviations. sales initiatives. Which message and/or copy The Ultimate Guide to Test Statistics. How often should we be something else. reveals the true impact of a marketing report on effectiveness of all programs and other marketing programs – can still influence This is a great way to test lead nurturing program the results. 47 . it’s an estimate campaigns at one time. Pre-Post testing doesn’t have a rigorous control group in which all other factors are the same. “If results are up. you do need to make sure the difference etc. it must Contact frequency. This is good in situations between your control and test groups is A common. leads. All rights reserved. etc. multivariate testing methodologies. Possible factors include: might have an equation like this: Sales=125M+3. factors as well Requires sophisticated example.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement METHOD FIVE FULL MARKET MIX MODELING • Search advertising gets credit for 3x5=$15M Market Mix Modeling (MMM) shows how • Display advertising gets credit PROS AND CONS OF MARKET MIX MODELING for 2x5=$10M sales volume outcomes are dependent on Pros Cons • Trade shows receive credit various independent marketing touches for 1. And of the $40M in • Distribution revenue generated by marketing: • Sales • Competitive moves • The economy • And so on… © 2011 Marketo. You’re likely to find that you’ll expend sales changes can Company X makes $165M in revenue. $5M on display advertising. Inc. the science of your own MMM equation by incorporating all factors that might impact Company X’s marketing mix model your output.5x10=$15M and other non-marketing factors by using Very accurate Needs lots of data.0*Display+1. Regardless. the most of your resources – both in time and Company X spends: undervalue longer-term money – in collecting your data. make sure you drill down to $10M on trade shows. All rights reserved. the selection of your independent Here’s a sample statistical equation variables can be a complicated affair – and Gives insight into program analytical skills (albeit an extremely simplified example): arguably involves as much art as it does effectiveness and efficiency Focus on short-term science. not analyzing it. Company X would have • Place made $125M in sales. such as regression.5*Trade Show • Pricing • Promotion/advertising This equation shows that. without • Product Marketing. can statistical techniques.0*ℎ+2. brand building activities $5M on search advertising. Only be costly to collect all the 3% of B2B marketers currently use this model (MMM)aking it your own Measures the impact of all required historical data As you might imagine after seeing this programs – and all external to measure marketing ROI. 48 . While less Drop-off rate Views/Visitors Customer Lifetime Value relevant to the CEO. these will be early Engagement rate Unique Views Share of Wallet indicators of market changes. organized by program type: Social shares Mentions Activity Online Ad Engagement Impressions Conversions Cost Per Click (CPC) Sentiment Cost Per Thousand Views (CPM) Cost Per Conversion (CPC Cost Per Action (CPA) © 2011 Marketo.and program-specific Attendee rate Website Metrics Churn Rate metrics should not be ignored. it’s important to capture Subscribers Social Media Metrics information across your marketing mix. Attendees Blog Metrics This list may represent only some of the Satisfaction Posts programs you run.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement PROGRAM-SPECIFIC METRICS – WHAT Email Metrics  Unsubscribe rate Communications Metrics No of press releases Direct Mail Eyes On YOU SHOULD MEASURE AND TRACK Bounce rate No of interviews Delivery Rate Open rate No of press events Response Rate While CMOs should be using methods Click-through rate Volume of coverage Cost Per Conversion like attribution and market mix modeling Share of voice to determine program effectiveness and Webinar Metrics Customer Metrics contribution. and will help Backlinks Customer Engagement Event Metrics track growth so program managers can ensure Conversions Registration proper campaign mix. Here Views/Visitors Gross views are a few metrics you may want to track on Unique visitors Connections a regular basis. Inc. 49 . All rights reserved. campaign. and go from there. It is no small task to maneuver through the inconclusive metrics.Definitive Guide to Marketing Metrics and Analytics Part 5: Program Measurement CONCLUSION: PROGRAM Quality trumps quantity. you position yourself get too overwhelmed. Start in small. But before you measurement model. You’ll optimize your overall program mix and prune individual You’re not alone on the learning curve. this means you have the ability to snag a competitive advantage over 87% of your competition! © 2011 Marketo. Inc. profits and market share. 50 . Said differently. bite-sized various program measurement models and chunks. All rights reserved. remember that: for future success. methodologies that are available to you – and if you’re among the 20% of B2B marketers What you put in is what you’ll get out. Who doesn’t study. 87% of senior marketers did not feel want that kind of reputation? confident in their ability to impact the sales forecast of their programs. then getting starting may financial resources in developing a marketing seem like a daunting prospect. top-performing programs to increase company According to a recent MMA/Forrester/ANA sales. You’ll benefit your company and improve your marketing MEASUREMENT APPLIED programs more with a few fine-tuned measurements than a handful of inaccurate. who don’t yet measure the ROI of their When you strategically invest your time and marketing programs. All rights reserved. 51 . Inc.Definitive Guide to Marketing Metrics and Analytics Part 6: Marketing Forecasting © 2011 Marketo. Marketing input to make a valid forecast for the period.” Done right. opportunities. currently in the sales forecast. upcoming marketing program or the new the methodology for making accurate HIGHLY ACCOUNTABLE MARKETING brand strategy – it’s almost always the sales marketing forecasts is simple in concept. “Next quarter. they have better visibility meeting the goal. All rights reserved. and there’s usually little to no input from the CMO. Inc. Model the flow of current and new leads through the various stages over time. © 2011 Marketo. discussed in Part 4. and customers marketing will yield in future periods because they know how many prospects are in each revenue cycle stage – and how they are likely to move through each stage over time. and We are not discussing “traditional” marketing then measure how each type of lead moves forecasts. Model the stages of the revenue cycle.Definitive Guide to Marketing Metrics and Analytics Part 6: Marketing Forecasting At executive staff and board meetings. Get accurate inputs for how many new the sales forecast.0 million of bookings that are not the worse the problem. but do not have the sufficient of the revenue team. And the shorter the sales cycle. become increasingly inaccurate the further marketing will generate an incremental 30 new out you look. to stake a portion of his or her compensation on revenue cycle. when marketing takes 4. Those kinds of forecasts can be useful consider marketing to be an essential part percentage and velocity). This was for strategic planning. CMO to make statements such as. so they put into the system over future periods. the Methodology for Marketing Forecasting number one topic of discussion is never an Though the details can get quite sophisticated. 52 . the In contrast. 1. 3. granular and actionable data required to compliment Long-Term Visibility 2. deals worth $4. FORECASTS forecast. Review the results and apply management marketing forecast gives a CMO the confidence responsibility for the early stages of the judgment to finalize the forecast. which take the form of a top-down market It’s no wonder most executives don’t through the various stages (conversion size analysis. Sales forecasts are based on what specific leads of each type the marketing team will Highly accountable marketing forecasts enable the accounts will do at specific times. and a CSO relies on marketing’s into future period revenue. executives can forecast how many new leads. and you engine. 53 .Definitive Guide to Marketing Metrics and Analytics Part 6: Marketing Forecasting Get Accurate Inputs Review Results and Apply Marketing forecasts are subject to the rule Management Judgment of “garbage in. Inc. to serve as the fuel for your revenue and will affect the conversion rates. sometimes lowering the forecast rates and inputs are accurate. steady over time. You will need Of course. That is why it’s essential for marketers to apply executive Model Flow through the judgment to their model projections before Revenue Stages finalizing their forecasts. geography. If your understanding of conversion forecast. Marketing and sales can by type. CMOs Project your revenue cycle forward by at larger companies will need to “roll-up” the modeling how existing and new leads will marketing forecast from multiple divisions convert through the various revenue stages (product. you will create from divisions that habitually overestimate a solid projection of what the revenue funnel their results. garbage out”. need to take this into account. © 2011 Marketo.) into one top-level over time. All rights reserved. For example. will deliver in future periods. these numbers are just estimates an accurate estimate of how many new leads and assume your conversion rates will remain will flow into the system in any given period. etc. © 2011 Marketo. This presentation can also illustrate the forecast for other revenue stages such But when marketing teams are able to make One way to present these metrics is as new prospects. - • Commit is the number that the CMO can -2 . the credibility they deserve. -3 . it also shows the forecasts from has more credibility (and power) than against these three metrics are sure to build the prior four months compared to actual marketing at most companies. Target and Forecast. - guarantee and should not vary frequently. results. 54 . Inc. the most recent estimates and adjustments. The example shows actual results for forecasts – especially over the long term. forward-looking will actually happen and should be based on time. them – with equal or greater accuracy. . The goals for individual groups Number of New Customers by Month should roll-up to meet the overall Target. 305 276 276 289 . marketing qualified leads. CEOs and board members • Forecast is the CMO’s best estimate for what as well as how the forecast changes over are impressed by accurate. . Current Month . revenue forecasts – and deliver against via a waterfall chart. . 294 305 315 331 • Target is a number higher than Commit which reflects what the team should be Commit Target Forecast Actual aiming for. . not Commit.Definitive Guide to Marketing Metrics and Analytics Part 6: Marketing Forecasting MARKETING FORECAST -4 -3 -2 -1 CUR +1 +2 +3 Commit 244 254 263 263 273 282 295 302 Commit. Forecasts matter. . the current month and a forecast for the next This is the single biggest reason why sales CMOs that track and communicate progress three months. . they will leverage a key competitive advantage in establishing their own clout within their organizations. This type of presentation is useful for showing Conclusion actual results compared to forecast and plan. this is the number to use as the basis for the Previous Month . Forecast Target 257 266 276 286 292 302 311 321 Any CMO making marketing forecasts should -4 257 266 276 286 . 276 282 302 311 - CMO’s quota / bonus. . - be rigorous about the difference between Commit. All rights reserved. . For example: even closed bookings. Target. . 273 276 270 276 . Definitive Guide to Marketing Metrics and Analytics Part 7: Dashboards (Source: http://pedrolaboy. All rights reserved. 55 .com/) © 2011 Marketo. Inc. ” focus on the key financial metrics that matter most. In leave the house (or in this case. are overwhelmed with marginally relevant There are many kinds of dashboards: internal information. most of against your goals – and communicate your which is not relevant. 56 . remember to dashboard). but not so many that you initiatives. “before you your senior management and the board. often with most. publish the the case of external dashboards. As Coco Chanel said. This will translate into Furthermore. you want to determine what to others inside and outside your department. take one thing off. So as you design your performance levels in a format that is intuitive dashboards. © 2011 Marketo. Inc. sophisticated decisions for you to understand what is really going on about improving your metrics and your future inside your data.Definitive Guide to Marketing Metrics and Analytics Part 7: Dashboards Dashboards create a visual display of all the Designing a Great Dashboard relevant information you need to measure and Your marketing campaigns and programs refine your current effectiveness in delivering generate a huge amount of data. marketing dashboards as well as dashboards Focus on the five key metrics that matter you share outside of marketing. dashboards help you make just the right number of metrics – enough more knowledgeable. is most useful to you. This will assist you and your fellow executive leaders in focusing on what is of ultimate importance: making better-educated decisions to improve revenue. All rights reserved. Inc. 57 . All rights reserved. downward or flat progress against key performance indicators. Speedometers show progress versus goals. Line charts show your data over time and allow you to see trends. Take the time to make your dashboards look attractive. Simple arrows are effective to indicate your upward. Relatively few numbers are shown. KPI alerts.Definitive Guide to Marketing Metrics and Analytics Part 7: Dashboards An important factor here is using the right information graphic for the data you have and the insight you need. A visually appealing dashboard can build your credibility. This sample dashboard from Lenskold Group serves as a best practice example of many elements that typically appear in a great dashboard: Few numbers. but the select few that are featured are key financial metrics. Line charts show trends. (Source: Lenskold Group) © 2011 Marketo. This is an effective graphic for conveying this information. People are motivated by what they can see. acting as catalysts for effective decision This is a seemingly minor yet critical point.” Remember. Spell it out: “Here is what we need to DO as a result of these data and insights. Frame your destination. When you communicate a clear a day-to-day basis. it’s more important to share insight into what they mean and key takeaways. it’s easy to overlook present your dashboards (or any metrics. vision about what you are trying to achieve. 58 . This should greatly influence how you our virtual business world. Inc.Definitive Guide to Marketing Metrics and Analytics Part 7: Dashboards Communication The best dashboards don’t just serve a reporting function. Paint the bigger picture. They should also guide PHYSICAL DASHBOARDS how people within your organization think. Call to action. In making. While you do need to present your numbers. you enable others to align towards the same objective. the actions you take based on your data matter more than the actual numbers themselves. © 2011 Marketo. All rights reserved. for a highly effective form of dashboard: a physical that matter): version displayed on whiteboards around your office. Start by reminding so you build excitement around the office when others what you collectively want to you give your growing success public visibility on accomplish. Definitive Guide to Marketing Metrics and Analytics Part 8: Implementation – People. All rights reserved. and Technology © 2011 Marketo. Inc. Process. 59 . An analyst must success of your marketing measurement In a perfect world. assign analytics across a full platform of modalities: electronic PEOPLE AND CULTURE ownership to someone currently within your communication. telephone and face-to-face organization – and then make absolutely sure conversations. • Are these high performers already on Analytical proficiency. Your prospective analyst must asking themselves the following questions: a priority. the What Kinds of People? Communication skills. and so on.Definitive Guide to Marketing Metrics and Analytics Part 8: Implementation – People. on the available information. or do I need to look outside my analytical skills will be able to absorb. most marketers are faced with the reality of its operations. Inc. Process. and Bias for experimentation. This requires you to set in place the right your enterprise’s adoption of marketing the results of a given project in ways that people.  hat kinds of people do I need W What Kinds of Skills? databases. it’s ideal to hire a possess excellent written. industry and operations. If you extend to listening and group facilitation skills find yourself in this scenario. the right process and the right analytics will be faster if you do. 60 . The ideal analyst cutting-edge technology are useless if you coverage to be successful. • What kinds of skills does my current If an analyst isn’t familiar with your business. and make decisions to products. adequate support. measurement? you search for and cultivate: This involves knowing each technology’s potential uses and limitations. If you aren’t getting the metrics you need. process. but the analyst must organization? and articulate large amounts of data and also understand your organization’s unique complex concepts. oral and visual program depends on how well you implement full-time analyst for this job – the pace of communication skills in order to explain it. • How can I create a culture of analytics? © 2011 Marketo. and Technology As with any business transformation. data networks. All rights reserved. so effective executives begin by it’s probably because you haven’t made them Technical savvy. Such capabilities begin in embarking on their measurement journeys effective interpersonal communication and with only the staff they already have. services. understand how computers. Even the most efficient methods and latest they have the skills. needs to possess a demonstrated willingness don’t have the right people driving the to problem solve with new approaches. group presentations. Someone with my team. visualize It may go without saying. However. and operating systems work – and on staff to implement marketing You’ll want to be intentional about the skills work together – to be successful in the role. solve existing problems that make sense based employee mix need to develop? they won’t be able to interpret your data. enable an organization to learn and improve technology. P. you need you’ll encourage a vicious cycle with the to bias your mindset toward hard financial opposite scenario. revenues.P. Even at companies that already accountable for meeting them.O. Process. but of time.I. A historical Of course.P. to override the analytics. A facts and numbers mentality. nor do they allow time for reflection around do what you can to ensure all relevant data implementing analytical conclusions to and insights are communicated before the improve operational efficiency and company H. The velocities a H.P.” People may refrain from that prompts your organization to use and act conducting valuable analysis and simply wait on your valuable conclusions. It’s pointless to set target Hiring (or designating) the right people is only goals if you don’t also hold people the first step. measurement to be successful.O.P. The other two-thirds involve driving it curse of the H. none of this will work without focus on “soft metrics” have caused buy-in and support from executive leadership. For marketing more useful and actionable metrics.P. doing the analysis is only about a third of the All too often. for their bosses opinion – or they might allow Schedule some quality time. in which frameworks that are conducive to fact-based the right metrics create the support for decisions and accountability. It can be marketing metrics. and Technology Creating a Culture of Analytics Accountability. Inc. have significant analytical activities underway. In either case. Act on information instead of gut. analytics are something tempting to believe your success will increase for which you need to allocate certain periods with every additional metric you measure.P. All rights reserved.. businesses suffer from the battle. metrics. 61 . Perhaps at which most marketing teams operate this is the case in your organization. When done right. If not. comes out. accustomed to operating outside of metrics can create a virtuous circle.I.O.I.Definitive Guide to Marketing Metrics and Analytics Part 8: Implementation – People. Or maybe today often do not accommodate analytics. this is not the case. many marketing departments to become especially the C-suite. © 2011 Marketo.O. not data.I.P. you yourself are the H. If you want to benefit from your Bias toward insight.: the “Highest Paid into all current business workflows in a way Person’s Opinion. Here. To be successful. You may not end up where new capabilities – preferably consisting of of an effective ROI process – what to measure. how to measure. and Technology PROCESS Build from there. we discussed the components better and better. digestible steps. Well-defined methods (and stages) will ensure Marketing ROI is a marathon. you thought you would when you started. your metrics’ efficiency and effectiveness. • Set a feedback loop in place for performance reviews. © 2011 Marketo. …Then start small. Dream big… As with many projects. you need to take a Examples include: methodical approach over the long term in several key areas: • Identify who will be involved and who will own each part of the process. articulated – vision of what you want your measurement end-state to resemble. Inc. Process. This will ensure stakeholder buy-in across your organization – and increase your chances for success over the short and long term. system to succeed.Definitive Guide to Marketing Metrics and Analytics Part 8: Implementation – People. you’ll refine it so it gets is to configure pilot teams to introduce In Part 2. As you continuously evolve Lenskold Group reports that one of the best and adapt your marketing measurement techniques to drive marketing ROI adoption system over time. All rights reserved. implement your marketing ROI processes. high interest in the changes you want to we will discuss how you can manage and implement. Proceed with manageable. Win small victories quickly. 62 . Successful pilot programs will implement the changes necessary in your In addition to well-defined principles. you’ll likely end up in a great place. not a sprint. you excite others within your organization about organization for this marketing measurement need to formalize the methods you’ll use to your measurement initiatives. but people who demonstrate adaptability and when to measure. you’ll position yourself for greater success if • Formalize training to cultivate and refine the you begin with a grand – albeit granularly specific skill sets your marketing team needs. Slow and steady wins the ROI race. establish a virtuous cycle for the value of individual your marketing ROI when marketing touches that you (Source: Visual IQ. investments moving forward. All rights reserved. forget-it project. “an (KPIs). agencies or analytics data into your metrics as well improve your marketing 7. your marketing success. 63 . 10 Steps to Enterprise Marketing Measurement) you close the loop of your can’t access on a user level. ad networks. doesn’t. Too much place. Employ your data to calculate providers. Where individual user data is achieving their goals. This is attribute across all marketing As Visual IQ says. Mathematical the marketing measurement see what works and what data from all sources. You’ll algorithms exist to calculate process. Inc. influence on other channels information will overwhelm performing best? Which • What would be the impact on sales search engines. time to act on the business • What would be the expected ROI if we will you collect your data Determine the impact of Be discerning in how much intelligence you gather with increased your budget by 10%? What would across multiple channels. Assign granular KPIs to 6.” Enable measure how well they’re will oversee each phase of stakeholder buy-in with 8. Formalize campaign data each channel. print and radio. marketing managers MARKETING MEASUREMENT IN REVIEW: A CHECKLIST should be able to answer any of the questions below instantly: 1. How your unique campaigns. use “top down” ensure their sponsorship of build your initiatives as you 5. Identify your Key 4. campaign and 10. R  OI-inse and repeat.Definitive Guide to Marketing Metrics and Analytics Part 8: Implementation – People. Assign values to 2. you the process. and Technology Whatever principles and methods you decide to use. Process. It’s and storage approaches. © 2011 Marketo. Which channels are database. to uncover historical trends. etc. if” scenarios to adjust and to where we started. When you involve where you establish business touch points to deliver true enterprise marketing key stakeholders who rules around when and how metrics that represent how measurement system is […] will use your data in their to measure what you want to effective each source is in not a one time. as well as their these scorecards. Define your data collection 3. in-house and campaigns. individual campaigns and data you incorporate into the system you’ve set in be the impact on sales closed? including your customer channels. Integrate sales transaction attribution. set-it-and- daily business functions to measure – and identify who generating revenue. small victories at first. Analyze and optimize. and your your ability to quantify the campaign mix and variations? if we decreased the marketing budget spreadsheets. measurements. Performance Indicators collection and tracking. such as offline channels like TV.? You can marketing measurement business revenue impacts of Integrate historical data by 10%? build your data warehouse success as a whole. and unavailable. It’s your individual and collective trends with your “what Sound familiar? It all comes back internally or rely on outside helpful to integrate historical marketing investments. true impact. Produce visual reports of 9. as well as four components: consume analytics data are business analysts. On the timely insight. companies that manually take data “snapshots” from their automate their lead management business Excel spreadsheets. This gets and do not store historical information – need to go. so marketers need to begin tracking this their programs without wasting valuable time that automation applied to an information now – preferably in one place. data. so marketers can efficient operation will magnify who don’t use such metrics experience. requiring marketers who want to analyze their metrics for prior time periods to According to Gartner. 4. Very few “The first rule of any technology Given the importance and potential of A successful analytics solution requires of the marketers who want and need to used in a business is that effective marketing measurement. Just make sure your marketing automation function as solutions for businesses that want what their attributes were. Inc. The second is require access to highly detailed marketing explore the data trends and gain insight into is no lack of vendors promoting “the next best thing” in marketing measurement technology. they cannot data around when marketing programs ran. Ad Hoc Reporting and Dashboards. time series processes between marketing and sales analytics give marketers a full picture of their before 2012 will increase their conversion performance trends over time because the rates by at least 50%. Analytics dashboards are required. other hand. Without powerful! contrast. build custom reports. automated measurement processes this information. Powerful and Easy Analyzers. who they touched. Process. © 2011 Marketo. data and customize their own ad hoc reports. business analyst experts will need 2. automation applied to an the scope of the problems that companies For such an audience. However. information collection and presentation. on. there the efficiency. solution offers tools that are both easy and to implement a robust analytics process. reliable and worthless. Unless an complete flexibility to delve deeply into the Automation frees up analysts’ time from operational system stores historical data.Definitive Guide to Marketing Metrics and Analytics Part 8: Implementation – People. in acquiring the expertise needed to maneuver inefficient operation will magnify While Excel spreadsheets and other ad hoc Required information will include historical the technology. Time Series Analytics. All rights reserved. Many companies will engine is powered by a historical data mart. the analysis completed faster and better. and so the inefficiency. Central Marketing Database. 64 . Yet the majority of most effective and allow analysts to “follow valuable insight into that data and refine marketing and sales systems are operational the scent” of particular insights as far as they their actions toward better results. In how much they cost. analytics are essentially provide much more definitive.” Bill Gates tools can do a lot for companies. and Technology Technology Automation Must-Haves 3. also see a 5% to 10% increase in revenue by 2015. table-like reports and charts are and allows them instead to focus on gaining marketing trends. a marketer cannot measure or understand In this case. powerful analyzers and 1. and so on. Definitive Guide to Marketing Metrics and Analytics Conclusion © 2011 Marketo. 65 . All rights reserved. Inc. not a destination © 2011 Marketo. important than the decisions reports enable T rain and hire experienced. Inc. 66 . tech savvy conversion rates and speed of closing to improve profits.” Measure strategically with your C-level suite Identify measurement priorities Set goals and run scenarios for all in advance of campaigns and plan Cultivate a culture of continuous marketing programs – prior to spending campaign-specific measurements improvement money concurrent with campaign planning Establish a roadmap for increasing Design programs to be measurable marketing ROI and measurement Integrate diverse measurements to capabilities over time  pply the insights from prior A determine how to best leverage the measurements in the current cycle unique strengths of each methodology  evelop a process that aligns marketing D of planning and to allow multiple measurements to and measurements to business objectives have a cumulative effect  un pilot initiatives to introduce new R  elve into all expenses involved in D capabilities customer value and improve the profit potential of each individual account – and  uild momentum by acting on insights B improve targeting for new accounts for initial wins  ontinuously evolve the marketing ROI C process — it is a journey. All rights reserved. Employ tools to display AND CREDIBILITY WITH MARKETING financial metrics they care about to build what’s urgent. find not just what works. PROFITABILITY. sales PERFORMANCE.Definitive Guide to Marketing Metrics and Analytics Conclusion KEY LESSONS TO IMPROVE YOUR Maintain financial integrity Create an environment to succeed  EOs and CFOs care about growing C Enable access to critical marketing. important and relevant METRICS AND ANALYTICS: credibility Implement marketing technology to use  e comprehensive in accounting B staff and marketing assets more efficiently for marketing-generated costs E nhance data analysis capabilities to Plan for future success  odel the stages of your revenue M advance precision of ROI analyses  eporting for reporting’s sake is less R cycle and understand your lead flow. revenue and profits – use the hard and finance data.” rather than just “proving ROI. people with a bias for experimentation sales but what works better. Focus on “improving  reate a virtuous cycle of communication C ROI. Alinean Need help getting started or advancing Website: Web Analytics Demystified MarketShare Blog: Tom Pisello. Website: Target Marketing Conversions Know Co-founder. Marketing Association Blog: Ron Shevlin’s Marketing Whims Tim Ash. Twitter: @JimSterne Bryan and Jeffery Eisenberg. Book: Landing Page Optimization: The Book: Data-Driven Marketing: The 15 President. Kellogg School of Association Jim Sterne. Global Marketing. marketing forecasting. Managing Partner. Twitter: @MeasureMan David Raab. Customer. The Lenskold Group Measurement Toolkit but all have the A+ smarts to push your Twitter: @LelandHarden Book: Marketing ROI: The Path to Website: Raab Associates Inc. metrics. marketing to the next level. Book: The Marketing Performance have books. Website: Lenskold Group CEO. All rights reserved. Website: Digital Engagement Managing Director. NPV and EVP-Americas. Eisenberg Holdings Book: Web Analytics 2. and Corporate Blog: Customer Experience Matrix Anne Holland. Conference Management Twitter: @PMAssociation Chairman. and marketing testing. marketing EVP. and Metrics Experts Senior Partner. Web Analytics Demystified Managing Editor.Definitive Guide to Marketing Metrics and Analytics Appendix: More Resources 18 Must-Know Marketing Analytics Adam Greco. Tom Pisello. @JeffreyGroks Organization Website & blog: VisionEdge Marketing Twitter: @LauraVEM © 2011 Marketo.0 President. Campaign. President. The ROI Guy your current marketing metrics? The Twitter: @AdamGreco Book: Marketing by the Dashboard Light Twitter: @TPisello experts below represent the best of the Website & blog: http://marketingnpv. Pat LaPointe. Inc. Performance Marketing is Wrong Mark Jeffery. Anne Holland Ventures. Agile Insights + Director Website: Performance Marketing CEO of SiteTuners & Chair of Conversion of Technology Initiatives. Some Book: Marketing by the Numbers Jim Lenskold. Which Test Won. others consulting firms. Managing Partners. Target Marketing Definitive Guide to Testing and Tuning for Metrics Everyone in Marketing Should Neil Patel.com/ best in marketing analytics. Raab Associates testing. Website: Eight by Eight Website: WhichTestWon Senior Analyst. 67 . VisionEdge Marketing Book: Always Be Testing Website & blog: Occam’s Razor Book: Marketing Metrics in Action: Website & blog: Eisenberg & Associates Twitter: @Avinash Kaushik Creating a Performance-Driven Marketing Twitter: @TheGrok. KISSmetrics and Crazy Egg Book: Social Media Metrics: How to Website & blog: SiteTuners Website: Agile Insights Blog: QuickSprout Measure and Optimize Your Marketing Twitter: @Tim_Ash Twitter: @NeilPatel Investment Avinash Kaushik. Chairman and Founder. eBook: Everything They’ve Told You About Twitter: @AmyAfrica Executive Director. Aite Group Blog: Amy Africa’s Blog Twitter: @AnneHolland55 Rebecca Jacobs Madigan. Web Analytics Association. Analytics Evangelist at Google Laura Patterson. Usee Owner.  Twitter: @JimLenskold Ron Shevlin. Eight By Eight Publisher. Profitability Twitter: @DRaab Amy Africa. marketing Leland Harden. com/content/ Creating a Performance-Driven Marketing LeadGenROI_2010. All rights reserved.com/b2b-marketing- http://marketingnpv. resources/best-practices/marketing-roi/ html?fid=18 metrics-that-matter-for-marketing- Interactive Lead Generation ROI Tool measurement.php from Lenskold Group http://www.com/content/landing_ http://www.visualiq.marketo.lenskold. html © 2011 Marketo. Inc.lenskold.lenskold.com/forms/default.php Metrics that Matter for Marketing Measurement – Webinar with David Raab Free ROI Spreadsheet from Lenskold Group http://www.com/resources/ marketing_roi.html Organization by Laura Patterson MarketingNPV: http://www.com/knowledge resources/book-club/marketing-metrics- _base/all/topics in-action-creating-a-performance-driven- marketing-organization.html white-paper-executive-checklist-marketing- 2010 B2B Lead Generation measurement Marketing ROI Study – Lenskold Group Book Excerpt: Marketing Metrics in Action: http://www.com/tools/LeadGenTool. 68 .Definitive Guide to Marketing Metrics and Analytics Appendix: More Resources 10 Steps to Enterprise Marketing CMO Guide to Marketing ROI Measurement: A Marketing Executive from Lenksold Group Checklist by VisualIQ http://www.lenskold.com/b2b-marketing- http://www.marketo. com/dg2-lead-nurturing comprehensive services. more than 1000 enterprise and Visit our blogs: blog.marketo.com.Definitive Guide to Marketing Metrics and Analytics Contact us North America: +1. SellingPower.Marketo.877.MKTO (6586) About Marketo Written by Jon Miller Europe: + 353 1 213 0500 Marketo is the global leader in Revenue Jon is VP Marketing and co-founder at Marketo.marketo. As of March 2011.com effectiveness solutions transform how marketing performance management in Marketo’s Visit our website: www. and was together — to drive dramatically increased named a Top 10 CMO for companies under revenue performance and fuel business growth. Marketo has been recognized with the 2010 Designed & illustrated by Velocity Partners. To get The Definitive Guide to Lead Scoring online. All rights reserved.260. turn marketing from a cost center to a business- visit: www. marketo. Inc. visit http://www.com and sales teams of all sizes work — and work popular blog. visit: www. and expert guidance Harvard College and has an MBA from the are helping corporations around the world to Stanford Graduate School of Business. and the “Best Marketing visit: www. “Best Sales and Marketing 2.com/dg2-b2b-social-media CODiE award for “Best Marketing Solution.com mid-market clients globally have adopted Marketo solutions. Jon To get The Definitive Guide to Lead Nurturing online. Marketo’s powerful He explores everything from lead nurturing and yet easy-to-use marketing automation and sales social media to marketing ROI and revenue Email: info@marketo. 69 .marketo. or subscribe to Marketo’s award-winning blogs at http://blog.marketo.com/dg2-lead-scoring building revenue driver. The company’s proven technology.com/. $250 million revenue by The CMO Institute.com/dg2-sales-qualification Automation Application” by Salesforce customers on the AppExchange. For more information. Performance Management.marketo. graduated Magna Cum Laude in Physics from visit: www.0 Solution” from To get The Definitive Guide to Sales Lead Qualification.” the the B2B marketing agency.marketo. To get The Definitive Guide to B2B Social Media online. © 2011 Marketo. Modern B2B Marketing. com 70 . info@marketo. Inc. All rights reserved.com © 2011 Marketo.marketo. www.