the math and magic of ‘data driven’ marketing...
TRANSCRIPT
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
The Math and Magic of ‘data driven’
marketing budgeting and measurement
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My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
Fluffy and Weak
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Source: Marketing Week
7%
Can exactly quantify ROI for
marketing spend
of financial directors
83%
Are unable to quantify ROI from
their marketing
of marketers
“Fluffy and Weak”
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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49%
Believe their role has expanded to
include strategic and financial
responsibility
of marketers
36%
Say Marketers role has expanded to
include strategic and financial
responsibility
of financial directors
Source: Marketing Week
Maths + Magic
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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• Using their data to build forecasts,
benchmarks and KPIs
• Have more control over budget for potential
growth aligned to commercial strategy
What marketers
need to be better at
• Understanding commercial objectives
• Realistic forecasts and predictions (trends and benchmarks)
• More accurate reporting (KPIs and metrics)
What financial directors
want from marketers
+ Automation | Complexity | Differentiation | SalesSource: Marketing Week
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Trends & Benchmarking
Provide the ‘gap’
KPIs & MetricsProvide the ‘focus’
McKinsey Big 5 Capabilities to support digital marketing operations
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
The struggle
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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When marketing is given a budget by finance it’s then seen as an expense . . .
…and you have no control.
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
FD says “Get to this number >20% growth”.
Because you’re not in control of the numbers…. and knowing where that growth is coming from.
This is as much about maturity of marketing and marketers as hitting a number
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My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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The maths and magic of “The goal”
Diagnosis = the why
Definition = the how
Trends Yours across
different areas
Benchmarks Industry, others and yours
Goal or Target [financial] Multi-year, current year, quarter
KPIs Financials, Conversion rates,
number of [sales]
Metrics & Measures Key metrics to monitor
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
Understanding Maturity
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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The budgeting and benchmarking maturity index
Laggards Legends
B2B organisations, who outsource
have a small growth rate of 6-10% year on year
B2C organisations, who have control in-house
have a growth rate in excess of 20% year on year
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Profile of Laggards
✓ Data is shared through Google Analytics and Excel
✓ More is outsourced (especially User experience and Analytics)
✓Struggle to attribute results due to complexity
✓ Sell in-direct, revenue remained the same year on year
✓ Digital investment accounted for 6-10%
✓ More B2B
Typical Industry Vertical
✓ Manufacturing and Engineering
✓Print & Publishing
✓Media & Advertising
✓Food & Beverage
✓Government
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Profile of Legends
✓ Data is shared through Excel and Business Intelligence
✓ More in-house (especially Email, Social, Analytics)
✓Manage to attribute campaign to ROI by channel and device
✓ Sell direct, revenue increased >10%
✓ Digital investment accounted for >20%
✓ More B2C (transactional)
Typical Industry Vertical
✓ Travel & Hospitality
✓ Telecomms
✓ Tech & Software
✓ Retail Ecommerce
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
Demystifying the bullshit of budgeting
and benchmarking
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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3 facts
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Continual adjustment and changing of forecasts and budgets improves results
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My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Goals dictate the budget NOT the budget dictating the goal
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My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Attribution is key, but complexity is a key barrier
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My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
Budget Forecasting and Measurement
is a Science and an Art
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Two tools to determine your GAP
TRENDING
BENCHMARKAllows you to diagnose where you are heading
Enables you to focus on the things which are important - trending up vs down
Used to measure change over time
Means you know if are exceeding the market
Enables you to focus on the things which are urgent - gap to competition up vs down
Looks at your results against the competition
KPIs: Best, Worst, You and the industry Average
KPIs: Year on Year, Quarter on Quarter change
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Understand the market
Today 2018
Year 1 2019
Year 2 2020
Year 3 2021
Year 4 2022
WHATS ACHIEVABLE
WHATS ACHIEVABLE
WHATS ACHIEVABLE
Your year on year growth rate…%
IF YOU DO ALMOST
NOTHINGIF YOU
IMPROVE
GAP
WHERE YOU WANT TO BE
BIG IDEAS WHICH BENEFIT THE
CUSTOMER AND REDEFINE THE SECTOR
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Understand the Reality not the Rubbish
Today 2018
Year 1 2019
Year 2 2020
Year 3 2021
Year 4 2022
WHATS ACHIEVABLE
WHATS ACHIEVABLE
WHATS ACHIEVABLE
Your year on year growth rate…%
Revenue
Direct vs Indirect (%)
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Revenue
For Digital (%)
02
Compound Annual Growth rate (3 years)
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IF YOU DO ALMOST
NOTHINGIF YOU
IMPROVE
04Market share against competitors PLUS their website volumes and metrics
GAP
WHERE YOU WANT TO BE
05 Headline opportunity for the market
Spend per customer & repeat purchase rate, number of new customers
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BIG IDEAS WHICH BENEFIT THE
CUSTOMER AND REDEFINE THE SECTOR
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Build your budget
01Define Headline £ opportunity for the market
Determine the number of transactions required02
Confirm the number of visitors required . GAP of returning vs New
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Identify the number of engaged visitors required 03
Confirm the best mix of media to close the audience GAP & match best competitor
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Define the budget required on the media mix, using the Cost per acquisition
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My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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Top tips and Takeaways
✓Use a benchmark to understand the gap to the competition
✓Use trends to understand if you are closing the gap to the competition
✓ Build the market opportunity first before defining the Goal
✓ Create your budget by working back from the goal you set
✓ Adjust your budget and forecast frequently
My Benchmark | T h e m a t h a n d m a g i c o f ‘d a t a d r i ve n’ m a r ke t i n g b u d g e t i n g & m e a s u r e m e n t
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