metrics and analytics: how to harness the power of data to build marketing credibility - michael...

© 2014 Marketo, Inc. Marketo Proprietary and Confidential© 2014 Marketo, Inc.

Metrics and Analytics

How to Harness the Power of Data to Build Marketing Credibility

© 2014 Marketo, Inc.

Topics• Building Marketing

Credibility• The Right Metrics

• Revenue Metrics• Marketing Program

Performance


The Credibility Gap

Fournaise Marketing Group 2012

80%Of CEO’s don’t really

trust marketers.

90%Of CEO’s trust CFO’s

and CIO’s


When Metrics Take Away Credibility

Vanity MetricsSound good and impress people, but don’t measure impact on revenue or profitability


When Metrics Take Away Credibility

Cost MetricsFrame marketing in terms of cost and spending instead of results and outcomes


Metrics That Give Marketing Power“Speak the Language of Business”

Aggregate impact on company revenue; pipeline performance; predictive forecasts

Journey Metrics and Forecasts


Metrics That Give Marketing Power“Speak the Language of Business”

Incremental revenue contribution and ROI of individual marketing programs

Program Performance


Measurement is Challenging

http://blogs.hbr.org/2014/10/when-it-comes-to-data-skepticism-matters/

© 2014 Marketo, Inc. Marketo Proprietary and Confidential

Journey Metrics


Nam

e

Awar

enes

s

Frie

nd

Enga

ged

Targ

etTOFU MOFU

Opportunity Customer

Lead

Sale

s Le

ad

Nurturing Database

BOFU


Awar

enes

s

Web

Vis

itor

In-personAppointment

Conv

erte

d

Enga

ged

Nurturing Database


Journey Modeler

Screenshot: Marketo Revenue Cycle Analytics


Revenue Cycle Modeler


# # # # # $ $

© 2014 Marketo, Inc. Marketo Proprietary and Confidential

Program Performance


Source: 2013 Lenskold Group 2013 Lead Generation Marketing Effectiveness Study

Ways that Companies Measure Program ROI


Why Measuring Return is Hard

• Multiple touches. Typical buyers engage with multiple campaigns. (7 to 10 for Marketo Buyers)

• Multiple influencers.Typical buying committee has 5-21 people


First Touch


Source: Marketo data, Marketo Revenue Cycle Analytics. Does not include all sources.



Inbound creates the best leads by far: high conversion, high velocity



But we also use a Portfolio of programs



Sponsored Email builds the database, but low conversion



Webinar, tradeshow, PPC, and virtual tradeshow are top paid TOFU



Paid Social & Display Ad drive brand and amplify inbound as well



Average days to

Opportunity: 327


Multi-Touch


Track All Touches Across People



Example: Multi-Touch AttributionA deal worth $100,000 recently closed. Three people were involved in the deal:

• Person A attended Seminar A and Trade Show B• Person B attended Trade Show B• Person C was sent Direct Mail C

$100,000 Revenue

$25,000 $25,000 $25,000 $25,000

Seminar A$25,000

Tradeshow B$50,000

Direct Mail C$25,000


Source: Marketo Revenue Cycle Analytics, Apr 2014* Percentage of all programs in channel that achieve MT Ratio > 5



Inbound + Nurture = 58% of (MT) PipelinePaid Programs = 42% of (MT) Pipeline



(MT) Ratio = Pipeline / Investment

>10 is Great and <5 is FailSponsored Email = 12.8, Tradeshow = 10.6, PPC = 13.0, Webinars = 25.4, Field Events =

6.6, Content Syndication 7.7



% Programs with MT Ratio > 5e.g. Tradeshow has good average

but 49% programs “fail”


Tweetable Takeaways1. Reporting is less important than DECISIONS that improve ROI2. Focus on financial metrics that matter to the CFO (profit, cash,

revenue)3. Avoid cost and spend metrics – focus on investment and

return4. Multi-touch attribution gives more insight into the full journey5. A trusted marketing forecast is the single most important step

to make marketing a revenue driver, not a cost center

metrics and analytics: how to harness the power of data to build marketing credibility - michael...

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